Sustainability Report - HUGO BOSS

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S U S TA I N A B I L I T Y R E P O R T 2 0 1 4
1
5
INTRODUCTION
PARTNERS –
ACHIEVING JOINT RESPONSIBILIT Y
3 Report Profile
5 Managing Board
62 Management Approach
6 Foreword
64 Protecting Human Rights
2
67 Fair Remuneration
69 Minimizing Environmental Impact
72 Avoidance of Harmful Substances
6
WE –
COMBINING E XCELLENCE
AND SUSTAINABILIT Y
PRODUCTS –
9 Company Profile
IDE AS FOR TOMORROW
15 Governance and Compliance
21 Strategy and Management
74 Management Approach
27 Stakeholder Dialog
77 Design
3
80 Materials
83 Animal Welfare
84 Product Life Cycle
85 Product Safety
7
ENVIRONMENT –
PRESERVING NATUR AL RESOURCES
31 Management Approach
33 Energy and Emissions
SOCIET Y –
37 Water and Waste
PROMOTING PERSPECTIVES
38 Logistics
4
88 Management Approach
89 Global Commitment
91 Impacting Local Communities
93 Sponsor of Contemporary Art
8
EMPLOYEES –
FAIR EMPLOYMENT AND FOSTERING
A CULTURE OF RESPONSIBILIT Y
40 Management Approach
FACTS AND FIGURES
43 Employment
46 Employee Fluctuation and Turnover
95 Performance Indicators
49 Value-Based Corporate Culture
108
GRI Index
52 Vocational Training and Employee Development
113
Independent Assurance Report
55 Compensation and Benefits
115
Legal Notice
56 Diversity
58 Occupational Safety
60 Occupational Health Management
Report Profile

Sustainability Report 2014
3
REPORT PROFILE
HUGO BOSS AG herewith presents its second Sustainability Report. It covers the business
year 2014. This corresponds to the calendar year 2014 and is based on the international G3.1
standard of the Global Reporting Initiative (GRI). Achievement of the level A+ means that
the report meets the highest level of application defined by the guideline. The quantitative
information provided in the report has been reviewed (limited assurance) by an independent
assurance company. The report is directed towards employees, customers, business partners,
shareholders, investors, non-government organizations, representatives from business,
academia, and government, and other stakeholders groups.
The report is published every year and is intended to create transparency for the existing and
planned sustainability objectives and activities of the Group. The Company has engaged in
a dialog with a range of internal and external actors with the aim of defining and prioritizing
the content of the report. The multi-stage process has involved an exchange pertaining to
specific issues within the action areas defining its sustainability strategy.
The report covers the HUGO BOSS Group. Unless otherwise stated, all the quantitative
information relates to production, logistics, and administrative locations, and includes the
Group’s directly operated stores in Europe, North America, and the locations in the area of
Asia/Pacific China (a total of 22 companies). This has expanded the scope of the report by
a further twelve locations compared with the reporting year 2013. The following companies
are included in the scope of the report:
In the region Europe
• HUGO BOSS AG
• HUGO BOSS AG (Austria)
• HUGO BOSS AG (Switzerland)
• HUGO BOSS France SAS
• HUGO BOSS International Markets
• HUGO BOSS Ireland Ltd.
• HUGO BOSS S & A Italia S. p. A .
• HUGO BOSS Switzerland Retail AG
• HUGO BOSS UK Ltd.
• HUGO BOSS Ticino SA
• HUGO BOSS Textile Industry Ltd.
• HUGO BOSS Shoes & Accessories Poland Sp. z o. o.
In the region North America
• HUGO BOSS Retail Inc.
• HUGO BOSS Canada Inc.
• HUGO BOSS Cleveland Inc.
• HUGO BOSS Fashions Inc.
Report Profile

Sustainability Report 2014
4
In the region Asia/Pacific
• HUGO BOSS China Retail Co. Ltd.
• HUGO BOSS Guangdong Trading
• HUGO BOSS Hong Kong Ltd.
• Lotus (Shenzhen) Commerce Ltd.
• Lotus Concept Trading (Macau) Co. Ltd.
• HUGO BOSS Australia Pty. Ltd.
Sustainability reporting has been streamlined worldwide through the utilization of a
data-management software, which is compliant with the requirements of the GRI and
facilitates recording and consolidation of company-specific indicators.
The Facts and Figures section also provides like-for-like information corresponding with the
reporting scope for the year 2013 to facilitate the comparison of performance data over time.
A small number of indicators from the reporting year 2013 underwent minimal adjustments
in this Sustainability Report. This is primarily due to improved data quality and exerts no
effects on the trajectories of the trends presented.
The group of consolidated companies included in the HUGO BOSS Group comprises
HUGO BOSS AG and all the subsidiary companies, including structured entities over which
HUGO BOSS AG is able to exert a direct or indirect controlling interest. Additional information
is provided in the Annual Report 2014, on pages 166–170.
Subsidiary companies exerting an immaterial interest on the net assets, financial position,
and results of operations of the Group are not included in the consolidated financial statements. The influence is deemed to be immaterial if the sales, earnings, and total balance
sheet assets of these companies on aggregate make up less than 1% of the corresponding
Group indicator. This assessment is audited on each balance sheet date. Non-consolidated
subsidiary companies are valued at fair value, or if this cannot be ascertained reliably, at
acquisition costs and are recognized as other non-current financial assets. On December
31, 2014, this related solely to HUGO BOSS Korea Ltd., South Korea.
The closing editorial deadline was May 2, 2015. The report is published in German and English.
Managing Board
Sustainability Report 2014
5
MANAGING BOARD
CLAUS- DIETRICH LAHRS
Stuttgart, Germany
Chief Executive Officer
responsible for
Sales,
Own Retail,
Communications,
Licenses
MARK LANGER
Stuttgart, Germany
Chief Financial Officer
responsible for
Finance and Controlling,
Investor Relations,
Legal,
Compliance and Risk Management,
IT,
Logistics,
Human Resources
and Director of Labor Relations
CHRISTOPH AUHAGEN
Stuttgart, Germany
Chief Brand Officer
responsible for
Creative Management,
Brand Management,
Sourcing and Production
Mark Langer, Claus-Dietrich Lahrs, Christoph Auhagen (f. l. t. r.)
Foreword
Sustainability Report 2014
6
FOREWORD
Dear Reader,
Excellence is one of the driving forces for everything we do at HUGO BOSS. Our customers
expect on the one hand high-quality and outstanding products and on the other hand a
corporate strategy based on a responsible and value-oriented management which meets the
aspirations of the brand and its image. This includes an ethically responsible management
of the entire value chain, dealing with business partners and stakeholders in a spirit of
cooperation, and a commitment to a positive and open environment for employees.
Clearly defined objectives combined with a mindset and structural approach geared to the
long term establish the foundation for an awareness of sustainability. The framework for
this is provided by the sustainability strategy containing the action areas defined in 2013.
They are used to continuously transform the global challenges faced by HUGO BOSS and
expectations of our stakeholders into responsible actions.
We have introduced more detail into our sustainability strategy and it has been supplemented
by numerous guidelines, measures, and concrete targets. As a result, we have concentrated
more intensively on the action area Partners and established social and environmental
standards in supplier management. Our commitment is also demonstrated by the fact that
in the business year 2014, we became a member of the Fair Labor Association and started
to implement the environmental module of the Global Social Compliance Program. We are
pursuing the approach of ensuring that our suppliers comply permanently with high social
and environmental standards and we are providing them with assistance in this endeavor.
In collaboration, we intend to achieve progress in this area.
Progress has also been made in integrating more locations into sustainability management.
The scope of the report was expanded by twelve companies. 22 companies at production,
logistics, and administrative locations in Europe, North America, and in the Asia/Pacific
China region reported on the relevant indicators in 2014. We will continue to expand the
scope of reporting in the upcoming years.
The launch of the distribution center in Filderstadt enabled us to take a major step towards
strengthening our operational performance over the long term. This advanced, state-of-the-art
logistics facility delivers substantial improvements in efficiency and has the additional benefit
of lower environmental impacts. The building complies with the highest sustainability standards
(DGNB Gold). In addition, our biggest production facility located in Turkey was certified for
the first time in conformity with environmental and energy-management standards. Our
corporate values are also in the foreground at the level of employees: numerous workshops
and other measures in 2014 increased awareness among our employees.
Our objective is not to stand still, but to continuously improve. Through our commitment to
sustainability, we hope not only to increase operational efficiency and minimize risks, but
also to achieve recognition of our performance from the sustainability-orientated financial
market in the medium term.
Foreword
Sustainability Report 2014
7
The Sustainability Report is an offer to engage in open communication with our stakeholders.
We would be delighted if you were to take us up on this offer and we look forward to your
feedback. HUGO BOSS views this dialog as an opportunity to positively reinforce the role
of sustainability in our Company and our products. However, our objective is also to provide
innovative impulses for the entire sector and promote ethical consumption among our
customers and consumers in general.
Our intention is to demonstrate that excellence, fashion, and responsibility are not mutually
exclusive – HUGO BOSS is committed to also representing this in the future.
Yours,
Claus-Dietrich Lahrs
Chief Executive Officer
Mark Langer
Chief Financial Officer
and Permanent Member
of the Sustainability Committee
Christoph Auhagen
Chief Brand Officer
and Permanent Member
of the Sustainability Committee
Bearbeitung:
Text bitte lesbar
WE –
COMBINING E XCELLENCE
AND SUSTAINABILIT Y
9 Company Profile
15 Governance and Compliance
21 Strategy and Management
27 Stakeholder Dialog
We – Combining Excellence and Sustainability
Company Profile
Sustainability Report 2014
9
WE –
COMBINING EXCELLENCE
AND SUSTAINABILIT Y
HUGO BOSS is one of the leading companies in the premium and luxury
segment of the apparel market. As such, the Group is dedicated to
taking responsibility – also in the area of sustainability. Our Company
has made a commitment to implementing its sustainability strategy
in six action areas and is using a materiality analysis to prioritize the
issues where HUGO BOSS is well-positioned to make a difference.
K E Y TA R G E T S
Finalization of the m
­ ateriality
­analysis, including the
­development of a materiality
­matrix and a sustainability
program in
2015.
Conduct a stakeholder
survey in 2015 with all relevant
stakeholder groups,
with the intention to identify
key issues and expectations.
Expansion
of regular obligatory
compliance training
sessions to
Implementation
of a group-wide and
­comprehensive
100%
stakeholder management
strategy by
of the group-wide
workforce by 2018.
2020.
Continuously expand
online communications
on sustainability issues,
in order to inform stakeholders
more comprehensively.
C O M PA N Y P R O F I L E
HUGO BOSS is one of the leading companies in the premium and luxury segments of the
apparel market. The Group focuses on developing and marketing premium fashion and
accessories for men and women. The Group is based in Metzingen (Germany) and employed
13,0431 employees who generated annual sales of EUR 2.6 billion in the business year
2014. This result makes the Group one of the most profitable listed clothing manufacturers
in the world.
The core brand BOSS, HUGO and the other brand lines BOSS Green and BOSS Orange
enable HUGO BOSS to reach out to varied and clearly differentiated target groups. The
brands present a comprehensive product portfolio with a range spanning from classic to
modern apparel, elegant evening clothing and sportswear, shoes, leather accessories, and
product groups marketed under license, including fragrances, eyewear, watches, children’s
fashion, textiles for the home, and mobile accessories2. Around 10,500 different products
were marketed in four collections across all brands in 2014.
1
N umber of people (headcount) in the HUGO BOSS Group in an active employment relationship on December 31, 2014,
including interns, diploma students and agency staff.
The license agreement for mobile accessories came to an end on December 31, 2014.
2
We – Combining Excellence and Sustainability
Company Profile
Sustainability Report 2014
10
0 2 | 0 1 H U G O B O S S B R A N D P O S I T I O N I N G
luxury
retail
premium
wholesale
authentic
lighthearted
innovative
dynamic
confident
sophisticated
progressive
contemporary
In 2014, customers worldwide were able to purchase HUGO BOSS products at around 7,600
points of sale. 57% of the sales were generated through the Group’s directly operated stores.
The number of stores operated by the Group increased by 31 to 1,041 in the year under
review. These include freestanding stores in premium shopping locations and shop-in-shops
operated by the Group in multibrand environments, mostly in the sales areas of department
store partners, and outlets. At the moment, the Group also operates eleven online stores
in Germany, the United Kingdom, France, Spain, Italy, the Netherlands, Belgium, Austria,
Switzerland, the USA, and China. 41% of Group sales were generated through the wholesale
trade during the course of the business year, including department stores, specialist stores
that are often family-run, franchisees, and to a lesser extent specialist online retailers. A
further 2% of sales were generated through the sale of licenses.
Europe is the biggest sales market for the Group. Alongside expansion of its market position
within traditional core markets such as Germany, the United Kingdom, France, and the
Benelux countries, HUGO BOSS is also well-positioned in attractive growth markets in
Eastern Europe, including Russia and the Middle East. The company also sees significant
potential for growth beyond Europe and anticipates that the proportion of sales generated
outside of Europe will rise steadily over the upcoming years.
We – Combining Excellence and Sustainability
Company Profile
Sustainability Report 2014
11
0 2 | 0 2 S A L E S BY R E G I O N (in %)
2010
2011
2012
2013
2014
Europe1
62
61
59
60
61
Americas
22
22
24
24
23
Asia/Pacific
13
15
15
14
14
3
2
2
2
2
Licenses
Including Middle East and Africa.
1 The HUGO BOSS Group is managed by HUGO BOSS AG as the parent company where
all the central management functions are bundled. The organizational structure of the
HUGO BOSS Group is based on a regional approach. The local business activities are pooled
in three regional organizations: Europe (including the Middle East and Africa), the Americas
and Asia/Pacific. These three regions and the Royalties business form the four operating
segments of the Group. The focus of the business activities of the HUGO BOSS Group
is in Europe, where the key administrative and production sites are located. Out of a total
number of (headcount) people working in the Group, 73% of the HUGO BOSS workforce
work in Europe, 14% of the workforce is based in the Americas region, and 13% in the
Asia/Pacific region.
The Managing Board is responsible for defining the strategy of the Group and for its management. The responsibility for central functions is divided between the different portfolios
of the Managing Board and is therefore bundled at the Group Head Office. Operational
implementation of the Group strategy is carried out in close cooperation with the regional and
brand directors, alongside the head of central functions. The organizational and management
structure clearly allocates areas of authority and responsibilities and within the Group defines
lines of reporting. It consequently directs all the Company’s resources toward sustainably
increasing company value.
We – Combining Excellence and Sustainability
Company Profile
Sustainability Report 2014
12
0 2 | 0 3 H U G O   B O S S G R O U P S T R U C T U R E
M A N AG I N G B OA R D
CENTRAL FUNCTIONS
O P E R AT I V E S E G M E N T S
Brand Management
Communication
Creative Management
EUROPE
incl. Middle East and Africa
Finance and Controlling
Human Resources
Investor Relations
AMERICAS
IT
Legal, Compliance and Risk Management
Licenses
A S I A / PAC I F I C
Logistics
Own Retail
Sales
LICENSES
Sourcing and Production
Apart from HUGO BOSS AG, the Group has a total of 55 consolidated subsidiaries located
in Europe, the Americas, and Asia/Pacific. The subsidiaries are responsible for the local
business activities. 35 subsidiaries are organized as distribution companies. In the year
under review, the Group operated its own production facilities in Izmir (Turkey), which is
the Group’s largest in-house production facility, and in Cleveland (Ohio, USA), Metzingen
(Germany), Radom (Poland) and Morrovalle (Italy). Following a comprehensive analysis of the
location, it is anticipated that the plant in Cleveland, where suits have been produced for the
American market to date, will be sold in the first half of 2015; however with the intention to
retain jobs. Conversely, capacities of the Group’s own production facility in Izmir are going
to be expanded with the addition of a new production building. Effective from July 4, 2014,
the HUGO BOSS Group has also established a new subsidiary in South Korea, HUGO BOSS
Korea Ltd. Further information is provided in the Annual Report 2014 on page 140.
We – Combining Excellence and Sustainability
Company Profile
Sustainability Report 2014
13
0 2 | 0 4 K E Y L O C AT I O N S /G L O B A L M A R K E T P R E S E N C E
USA, Cleveland
Production
USA, New York
Headquarters Americas,
Designstudio Womenswear
AMERICAS
USA, Midway
Warehouse
~ 1,750
Points of sale
204
Own retail stores
2
Showrooms
We – Combining Excellence and Sustainability
Company Profile
Sustainability Report 2014
14
Germany, Metzingen and
surrounding areas
Headquarters Group and
Europe, development and
pattern design, production,
warehouse
~ 500
Points of sale
242
Own retail stores
1
Showroom
Poland, ­R adom
Production
EUROPE
(including Middle East and Africa)
ASIA / PACIFIC
Turkey, Izmir
Production
Italy, Morrovalle
and Scandicci
Development and pattern
design, production
Switzerland, Coldre­rio
Development and
­p attern design
~ 5,350
Points of sale
595
Own retail stores
16
Showrooms
Hong Kong
Headquarters
Asia / Pacific
We – Combining Excellence and Sustainability
Company Profile | Governance and Compliance
Sustainability Report 2014
15
On December 31, 2014, the shareholder structure of HUGO BOSS was made up as follows:
32% of the shares in the Company (December 31, 2013: 56%) were owned by Red & Black
Lux S.à r.l. The private equity company Permira holds a majority shareholding in this entity.
The free float therefore amounted to 66% (31 December 2013: 42%). The proportion of the
shares held by HUGO BOSS AG in the authorized capital amounted to 2% (December 31,
2013: 2%). The current shareholder structure is shown on the corporate website at http://
group.hugoboss.com/en/investor-relations/share/shareholder-structure/.
0 2 | 0 5 S H A R E H O L D E R S T R U C T U R E A S O F D E C E M B E R 31 (in % of share capital)
2014 (2013)
Free float
66 (42)
Red & Black Lux S.à r.l.
32 (56)
Own shares
2 (2)
The Company has published the following financial indicators for the business year: In
2014, the HUGO BOSS Group generated sales amounting to EUR 2,572 million (2013:
EUR 2,432 million). The Group net income was EUR 334 million (2013: EUR 333 million),
personnel expenses amounted to EUR 514 million (2013: EUR 483 million). Retained
earnings, which contain profits that have not been distributed and that were generated
in the past by the entities included in the consolidated financial statements, amounted to
EUR 801 million at the end 2014 (2013: EUR 702 million). Further information relating to
the financial indicators of the Group can be found on pages 33–35, 155–157, and 228–231
of the Annual Report 2014. Information on donations is provided in the Society section of
this Sustainability Report.
G OV E R N A N C E A N D C O M P L I A N C E
HUGO BOSS AG is a publicly listed stock corporation. It is therefore subject to the
German Stock Corporation Act that stipulates the requirement for a dual governance
system comprising a Managing Board and a Supervisory Board. The Managing Board
and the Supervisory Board of HUGO BOSS AG cooperate closely together for the benefit
of the Company. Their shared objective is to increase the enterprise value over the long
term. The Managing Board therefore regularly informs the Supervisory Board in a timely
manner and in detail about all issues of importance for the Company relating to strategy,
planning, the development of business, the risk position and risk management, and about
compliance issues. Deviations from targets and budgets are explained to the Supervisory
Board and its committees. The strategic alignment and further development of the Group
are discussed and coordinated with the Supervisory Board. In 2014, the meetings of the
Supervisory Board focused on the annual financial statements of HUGO BOSS AG and the
We – Combining Excellence and Sustainability
Governance and Compliance
Sustainability Report 2014
16
HUGO BOSS Group as of December 31, 2013, the corporate strategy to the year 2020, the
organizational structure of the Group, the structuring of sustainability management, issues
relating to corporate governance, the budget for 2015, and the planning of the internal audit
for 2015. Additional information is provided on pages 10–14 of the Annual Report 2014.
HUGO BOSS has always believed that good and transparent corporate governance in
compliance with German and international standards is key factor for the success of the
Company in the long term. Good corporate governance is therefore part of the corporate
culture and encompasses all the areas of the Group. The Managing Board and the Supervisory
Board are committed to ensuring the continuation of the Company and the generation of
sustainable value added through responsible corporate governance that is geared to the long
term. In the business year 2014, the Managing Board and the Supervisory Board intensively
addressed compliance in accordance with the requirements of the German Corporate
Governance Code (GCGC). The outcome was the issue of the declaration of compliance in
December 2014, which is also published on the website of HUGO BOSS AG: http://group.
hugoboss.com/en/investor-relations/corporate-governance/corporate-governance-statement/
declaration-of-compliance/.
The Members of the Supervisory Board of HUGO BOSS are elected by the Annual
General Meeting on the basis of their expertise and qualifications to advise, monitor and
supervise the Managing Board. They have the necessary know-how, skills, and professional
experience necessary for the relevant committees. The attribute of independence for the
members of the Supervisory Boards as highlighted in the German Corporate Governance
Code has long been an important requirement at HUGO BOSS. In this regard, the Super­
visory Board already defined a concrete objective in 2011, which requires at least eight of the
twelve members of the Supervisory Board to be independent. Six out of these independent
members are employee representatives. The Supervisory Board believes that the number
of two independent shareholder representatives is appropriate in view of the fact that the
shareholder structure is dominated a single major shareholder. In 2014, the Chairman of the
Supervisory Board, Dr. Hellmut Albrecht, and the Chairman of the Audit Committee, Dr. Klaus
Maier, were classified as independent members of the Supervisory Board. None of the
current members of the Supervisory Board had previously held a Managing Board position
within the Company. There were also no advisory or other service and work contracts in
place between the members of the Supervisory Board and the Company during the year
under review. Subject to the election of the proposed candidates at the Annual General
Meeting, the Group assumes that the number of independent shareholder representatives
on the Supervisory Board will be increased to four in 2015.
HUGO BOSS will exceed the original diversity target that following the annual election in
2015, the Supervisory Board should have at least two women as members. Apart from the
three employee representatives elected in March 2015, another woman will be a member
of the Supervisory Board, if elected as a shareholder representative at the Annual General
Meeting. The current composition of the Supervisory Board is listed on the website of the
Company under http://group.hugoboss.com/en/group/corporate-goverance/supervisory-board/.
Additional information pertaining to the Supervisory Board is provided on pages 17–18 of
the Annual Report 2014.
We – Combining Excellence and Sustainability
Governance and Compliance
Sustainability Report 2014
17
In order to avoid conflicts of interest, the members of the Managing Board and the Supervisory Board are not permitted to pursue personal interests or grant unjustified advantages
to third parties when making decisions in connection with their role with HUGO BOSS. In
the business year 2014, there were no conflicts of interest between the members of the
Managing Board or the Supervisory Board. The offices held by members of the Managing
Board and Supervisory Board in supervisory boards constituted under statutory legislation or
in comparable governance bodies of German and foreign organizations bodies are published
of the Annual Report 2014 (pages 240–242). No member of the Managing Board has more
than three memberships on Supervisory Boards of publicly listed companies outside the
Group. The same applies to members of the Supervisory Board, who hold positions on
management boards of other publicly listed companies. Related party disclosures are
provided on pages 232–234 of the Annual Report 2014.
The work of the Managing Board is directed toward increasing the enterprise value over
the long term. The compensation structure of the Managing Board is oriented toward
the sustainable growth of the Company by factoring in compensation components with
a multiple-year assessment basis. The total compensation of individual members of the
Managing Board comprises non-performance-related (fixed) compensation components
and performance-related (variable) compensation components. The total compensation of
individual members of the Managing Board is defined by the Supervisory Board, taking into
account any payments made by Group companies on the basis of a performance assessment. The criteria for assessing the appropriateness of the compensation are based on the
functions of the individual member of the Board of Management, their personal performance,
the economic situation, the success and the outlook of the Company. Another factor is
provided by the level of compensation usually paid in the sector, taking into account peer
companies and the compensation structure in place in other areas of society. When the
Annual General Meeting in 2015 comes to an end, the Group will also publish the individual
compensation for members of the Managing Board, since the resolution by the Annual
General Meeting not to disclose individual compensation packages was not adopted again.
Additional information on the compensation of the Managing Board is provided on pages
104–108 of the Annual Report 2014.
Since sustainable business is the basic enabler for long-term corporate success at all levels
of the Company, all employees entitled to receive a bonus are assessed on the basis of
sustainable, performance-oriented targets alongside the members of the Managing Board.
Ratings based on sustainability serve as internal benchmarks, in order to provide a method of
assessing the sustainable performance of the Company over the long term and as necessary
for evaluating the performance of individual employees. The findings from this process are
a fixed component for the annual bonus agreements for management.
The Managing Board
is a
­ ssessed on the
basis of sustainable,
performance-­oriented
targets.
We – Combining Excellence and Sustainability
Governance and Compliance
Sustainability Report 2014
18
Effective risk management ensures that the Group identifies risks at an early stage
and appropriate measures are taken to minimize any negative impacts. Combined with
systematic identification of new opportunities, this increases the reliability of the Group’s
decision-making processes and establishes the foundation for consistent attainment of targets.
The Company’s risk and opportunities policy therefore makes a contribution to increasing
the enterprise value over the long term. Coordination of group-wide risk management is an
independent risk-management function at the headquarters of HUGO BOSS AG. This allows
risks to be identified at an early stage, which can then be analyzed, managed, and monitored.
Measures can be adopted to minimize risks as necessary. Central risk management develops
the tools within the risk management system on an ongoing basis and ensures that risks
are systematically captured across the Company according to a standardized method and
at the defined regular intervals. When they start their activity, each risk officer receives
training from an employee in the central risk department on the issues of risk awareness,
risk assessment, and risk management and control.
The process of capturing and aggregating global risks is carried out on the basis of a universally
applicable risk atlas that allows several individual risks to be bundled together into thematic
risk areas. These are in turn assigned to an external, strategic, financial, operational, or
organizational main risk category. Tax risks, risks in relation to suppliers and procurement
markets, and risks in the area of occupational safety and healthcare management form
a constituent element of the risk atlas and are controlled through the standardized risk-­
management process. In 2014, environmental and health risks were also included in the
risk atlas. There is additionally a large number of information systems and instruments that
are directly geared toward specific fields of risk such as environment, quality, or ecological
and social standards for suppliers.
All risks recorded in risk management are assessed for their medium and long-term
development over a period extending beyond a year. HUGO BOSS is a Group operating on
the international stage with an established brand and it assesses long-term risks such as
reputational risk. This type of risk is capable of damaging the brand image and the success
of the Company over the long term. HUGO BOSS is indirectly affected by climate change
and the resulting regulations and customer requirements. In this connection, the Company
analyses risks which can result from tougher legislation, for example stricter regulations for
the newbuild of production and administrative buildings, compliance with stricter emissions
limits, and potential market changes in the area of raw-materials procurement. Increasing
premiums for insurance at locations and distribution centers against natural catastrophes such
as flooding and potential power outages at suppliers can be anticipated as a consequence
of increasingly extreme weather events and natural catastrophes. Additional information is
provided on pages 112–136 of the Annual Report 2014.
We – Combining Excellence and Sustainability
Governance and Compliance
Sustainability Report 2014
19
Since HUGO BOSS AG and the Group companies are operating in a various countries and
regions, they are subject to different legal jurisdictions. The corporate compliance structures
are firmly established at HUGO BOSS and they constitute part of its good corporate governance. The structures encompass all measures for complying with statutory and government
regulations, internal company guidelines and codes. One of the key management functions
of the Managing Board is to ensure that the Group companies comply with these structures.
The compliance department supports the Managing Board with compliance management
monitoring. The department reports directly to the Chief Financial Officer, who is also the
Chief Compliance Officer. The central compliance department and the individual managers
in the Group companies ensure that the HUGO BOSS compliance program is implemented
across the Group and continually developed.
The statutory regulations include antitrust and anti-corruption regulations, and the regulations
under legislation governing capital markets. HUGO BOSS AG expects all employees to act
in accordance with the law at all times during everyday business activities. The basis is the
Code of Conduct, which are the applicable corporate-wide principles, as well as additional
in-depth corporate guidelines. In particular, they include regulations on conduct in competition, on avoiding conflicts of interest, on the appropriate handling of company information,
ensuring fair and respectful working conditions, and on anti-corruption. The framework for
the corporate social responsibility of the Company is also provided by the HUGO BOSS
Code of Conduct. It prohibits donations to political parties and their representatives, and
to organizations that could give rise to conflicts of interest such as trade unions, consumer
rights groups, and environmental protection groups. The Code also prohibits donations to
individuals and payments to personal bank accounts. Additional provisions are in place and
which are to prevent the Company’s image from being damaged through donations. All
donations must be transparent, traceable and require the approval of the Managing Board.
In particular, the purpose and the recipient must be clearly identified.
All employees of HUGO BOSS are required to comply with the Code of Conduct and the
supplementary guidelines. Their awareness is raised through the continuous dissemination of
information and training sessions. Some 2,044 employees throughout the Group took part in
face-to-face training sessions in the year under review. HUGO BOSS also has an e-learning
program which all administrative employees and managers must successfully complete
every 18 months. In 2014, a rotational training program was held for 2,982 employees.
The e-learning program is being revised in 2015 and it will be used for other markets in the
future, and expanded to include other groups of employees. When there are questions about
conduct in compliance with legal regulations, employees can consult their supervisors or the
Compliance Officer. HUGO BOSS has also established a worldwide ombudsman system.
Employees and third parties, such as suppliers or customers, can turn to the ombudsman
if they have any suspicions about business crimes, antitrust infringements or breaches of
compliance guidelines. All communication with the ombudsman is confidential and can be
kept anonymous on request. During the year under review, no breaches against internal
guidelines were reported to the ombudsman.
2,982 employees
completed a compliance
training.
We – Combining Excellence and Sustainability
Governance and Compliance
Sustainability Report 2014
20
The correct conduct for employees when dealing with customers, other employees,
suppliers, and the general public is also anchored in the company mission statement of
HUGO BOSS. It integrates the vision, corporate values, and corporate strategy, and firmly
integrates sustainability into all the decisions within the Group. The company’s mission
statement – “HUGO BOSS inspires people towards success” – is founded on the five
corporate values of quality, passion, respect, cooperation and innovation. These values
were worked out over the course of 2012 and 2013 in the international project “commit”,
which included employees from different specialist areas and hierarchical levels. They
define the daily cooperation between employees and reflect the corporate culture of the
HUGO BOSS Group. The values are reinforced in daily interactions between staff through
regular workshops and campaigns. They have also been included in the target agreement
for each employee.
HUGO BOSS does not tolerate deliberate misconduct and breaches of the Code of Conduct.
All the companies included in the report were investigated for possible corruption risks
during the period under review. In 2014, there were no corruption cases. No lawsuits relating
to anti-competitive behavior, the area of consumer protection or breaches of regulations
concerning diversity and equal opportunities were filed during the period under review. At
production level, the production facilities of HUGO BOSS AG were regularly checked for
compliance with the HUGO BOSS social standards. During the year under review, social
compliance audits were carried out at the three locations of the HUGO BOSS Group in
Metzingen (D), Coldrerio (CH) and Izmir (TR). These audits did not uncover any breaches of
the social standards. During the year under review, 15 cases of discrimination were reported
within the Group. The Company is committed to carrying out a thorough investigation in all
cases and implementing appropriate measures – this was implemented for 13 cases in 2014.
HUGO BOSS takes a responsible approach to corporate governance and adopts an ethical
approach in international business. The Group interprets this as guaranteeing compliance
with the prevailing tax laws through clearly defined internal structures and processes.
The overall responsibility for all tax issues in the Company is with the Chief Financial Officer
and the central controlling function reports to the CFO. Tax issues are regularly analyzed
and assessed by the central controlling function. The assessment of taxation risks forms
a fixed component of group-wide risk management (see page 125 of the Annual Report
2014). When assessing risks in the area of taxation, the Company draws on the assessment
of local external specialists, such as lawyers or tax advisors. The Company is well aware
of the importance that tax issues play in the development of local and global economies.
HUGO BOSS believes that part of sustainable and responsible corporate governance should
be to establish subsidiaries only in countries where the Company generates a taxable
income in the course of its ordinary business activities. HUGO BOSS reports revenues in
countries where they are generated and adheres to internationally acknowledged standards
for disclosure. The group of consolidated companies is presented transparently on pages
166–167 of the Annual Report 2014 (additional information on the subject of taxes is provided
on page 147, 172–173 and 188–191 of the Annual Report 2014).
We – Combining Excellence and Sustainability
Strategy and Management
Sustainability Report 2014
21
S T R AT EGY A N D M A N AG E M E N T
The mission statement “HUGO BOSS inspires people towards success” forms the foundation for the Group strategy. The purpose of this strategy and the aim of the HUGO BOSS
management are to obtain a long-term increase in the enterprise value. The Company’s
internal controlling system supports the Managing Board and the management of the
business units in directing all the corporate processes toward this target. The Group focuses
on free cash flow over the long term in order to increase the enterprise value. Maintaining
positive free cash flow on a long-term basis secures the Group’s financial independence
and its solvency at all times. Increasing sales and operating income are the main levers for
increasing cash flow. HUGO BOSS has set ambitious goals in this area. The Group relies
on its core competence in order to achieve these goals: the development and marketing
of high-quality apparel, shoes and accessories in the premium and luxury segment. The
Group strategy builds on this to leverage the core brand of BOSS, expand the market
position in BOSS Womenswear, further develop its own retail sales points, global growth,
and maximization of operating strength.
A central focus of the company strategy is the transformation of the business model of
HUGO BOSS toward directly operated stores. The Group’s own stores provide an ideal
environment for a high-quality presentation of the brands and collection – in stationary retail
and in online stores. The expansion of the Group’s own retail business and the enhancement
of the brand presentation in the wholesale trade have empowered HUGO BOSS to offer
its customers throughout the world an increasingly uniform and highly attractive shopping
experience. In 2014, the Group generated 57% of its sales in its own retail business. By 2020,
the proportion of own retail is projected to expand to a minimum of 75% of consolidated
sales. This development is in consistent alignment of the Group with its customers. They
expect excellent products from HUGO BOSS, which also incorporate important sustainability
aspects as a fixed component of all processes.
Responsible actions and a long-term approach are key elements of the economic management
approach at HUGO BOSS. The corporate values of quality, passion, respect, cooperation,
and innovation form the foundation for this. The objective of the principle derived from these
values “We act responsibly” is to create added value – for employees, customers, business
partners, shareholders, and the community. HUGO BOSS sees sustainable business as an
opportunity to guarantee the high quality of products expected by customers, to ensure their
loyalty, drive forward innovations and further develop the business model, increase efficiency
along the value chain and to increase the loyalty of its own employees over the long term.
Sustainable business
is ­recognized as an
­opportunity by HUGO BOSS.
We – Combining Excellence and Sustainability
Strategy and Management
Sustainability Report 2014
22
The foundation for defining the group-wide sustainability strategy of HUGO BOSS was a
materiality analysis. This allowed the sustainability aspects relevant for the Company to
be identified and compared with the requirements of important stakeholders. The resulting
issues were allocated to six strategic fields of action which now form the framework for the
group-wide sustainability activities and define the central reporting content of HUGO BOSS.
The Company has focused on standards that extend across sectors and analyzed supplementary industry-specific risks and opportunities in order to define the relevant sustainability
issues for HUGO BOSS. The criteria sets for international accredited sustainability standards
like the Global Reporting Initiative (GRI) were utilized for this purpose. The sustainability
aspects identified as relevant for HUGO BOSS were then expanded by company-specific
issues which are derived from an analysis of the most important impacts of the Company
on its social and ecological environment. These impacts result mainly from the activities in
the supply chain. Here lie the greatest risks for textile companies – particularly in relation
to compliance with social standards, such as occupational safety, health protection and
human rights. Similar principles also apply to the production of raw materials and the
refinement processes to create the finished product. This also happens primarily in the
production facilities of the suppliers, outside the perimeters of the Company. Moreover,
a large proportion of the environmental impacts within the life cycle of the products from
HUGO BOSS are also generated in the supply chain.
HUGO BOSS commissioned an online survey during the reporting period in order to gain an
external evaluation of the issues. Customers and non-customers of HUGO BOSS were
surveyed about their assessment of the importance of individual sustainability issues for
HUGO BOSS and the products sold by the Company. This yielded a prioritization of external
expectations which focused on issues like conservation of natural resources, fair and safe
working conditions, and how the Company treats its employees. The responsibility exercised
by the Company in relation to the safety and quality of its products and the protection of
animals and species were identified as key elements of sustainability management. Important
information was also provided by the enquiries the Company received from investors and
the press, and issues concerning consumers that were dealt with by Global Communication.
The results were also compared with the information requests made to the Company by
external sustainability rating agencies and other stakeholders. The criteria of the Dow Jones
Sustainability Index (DJSI) were used as an appropriate reference for the information needs
of the capital market players.
HUGO BOSS is planning a systematic, more in-depth integration of stakeholders for the
year 2015. The Company will work together with its key stakeholders in the areas of social
engagement, environment, animal welfare and the capital market, and will redefine the prioritization of relevant sustainability issues. The objective is to identify and evaluate long-term
sustainability risks and opportunities for the Company, as well as the joint development
of activities. Initial concrete steps in implementing the materiality analysis will be taken
beginning 2015 with the International Union for Conservation of Nature (IUCN).
Systematic evaluation of
relevant challenges through
external stakeholders.
We – Combining Excellence and Sustainability
Strategy and Management
Sustainability Report 2014
23
The sustainability strategy of HUGO BOSS derived from the materiality analysis includes
a total of six fields of action. The individual sustainability issues relevant for HUGO BOSS
are assigned to the fields of action:
0 2 | 0 6 S U S TA I N A B L E AC T I V I T I E S
We act responsibly
Material issues
We
Acting in the
interests of
stakeholders
Stakeholder engagement,
corporate governance,
­anti-corruption and compliance
Environment
Conserving
natural
resources
Environmental management
and environmental management system, energy and CO2
emissions, product safety
Employees
Providing fair
employment
and targeted
support
Occupational health and safety,
training and further education,
employer attractiveness,
employee retention
Partners
Working
together
responsibly
Social compliance, protection
of human rights, environmental
protection, child and forced
labor, fair and safe working
conditions for suppliers
Products
Developing
ideas for
tomorrow
Product safety, health,
animal welfare
Society
Establishing
common
values
Community engagement at
company locations, donations
and sponsoring
The Company groups the principles of its sustainability management and the dialog with
its stakeholders under “We”. Furthermore, the strategy defines the areas environment,
employees, partners, product, and community as five additional fields of actions. The
Group intends to continuously improve in all areas. It has formulated measures and targets
in each field to optimize processes and structures along the value chain to assist in generating improvements. The defining factor in all fields of action is the reduction of potential
negative impacts of the Group on its social and ecological environment. At the same time,
HUGO BOSS views sustainability as a continuous improvement process with positive effects
for the perception of the Company in the public domain and the development of financial
results. The Company is committed to providing information for interested stakeholders
and the general public about the development of sustainability activities and progress in
relation to the defined targets at regular intervals.
We – Combining Excellence and Sustainability
Strategy and Management
Sustainability Report 2014
24
0 2 | 0 7 S I X F I E L D S O F AC T I O N
WE
SOCIETY
ENVIRONMENT
W E AC T
R E S P O N S I B LY
PRODUCTS
E M P L OY E E S
PA R T N E R S
We: HUGO BOSS engages in a constructive dialog with its stakeholders in the course of its
sustainability management and regards their expectations and demands as an opportunity
to create value for both sides. In order to promote constructive dialog, the Company is
dedicated to transparent reporting on its own activities and goals.
Environment: HUGO BOSS believes that excellence in environmental protection entails
making a meaningful contribution to combating global climate change, protecting natural
resources through intelligent concepts and environmentally friendly technologies, reducing
environmental impacts, and preserving biodiversity. The Company focuses in particular on
its global supply chain.
Employees: HUGO BOSS is committed to recruiting well-qualified and committed employees
to the Company, who are an optimum fit with the requirements derived from the strategic
direction of the Company. The Group creates a working environment where every individual
can be ideally integrated and make the most of their potential to achieve success. The
HUGO BOSS Code of Conduct creates the framework for this.
We – Combining Excellence and Sustainability
Strategy and Management
Sustainability Report 2014
25
Partners: To protect human rights, HUGO BOSS commits itself and all HUGO BOSS suppliers
to maintain internationally accredited employment and social standards, to guarantee fair and
secure working conditions, as well as complying with local and national environmental laws
to make an active contribution to protecting the environment. HUGO BOSS is increasingly
engaging in international initiatives, in order to strengthen social compliance and continuously
develop existing standards.
Products: HUGO BOSS products must satisfy the highest expectations for quality, design
and processing, as well as complying with the expectations of consumers for sustainability.
The Company respects animal and species conservation and ensures that its products are free
from risks, in order to ensure the wellbeing of its employees and customers. It also pursues
measures to reduce the environmental impact of its collections along the entire life cycle.
Society: HUGO BOSS upholds and is committed to compliance with binding legal standards
and internal rules, in order to retain the trust of business partners and the general public in
the integrity and reliability of the Company. By taking on social responsibility at its locations
and through its global commitment to support vulnerable children, the Group enhances its
acceptance within the community and within its immediate enterprise environment.
The Company has a broadly based sustainability management for consistent implementation
of its sustainability strategy. The Managing Board of HUGO BOSS has overall responsibility
for sustainability. At its meetings, it regularly addresses issues relating to risk management,
personnel development, environmental protection, occupational safety, health protection
and stakeholder dialog. The Managing Board also adopts guidelines and standards on
sustainability that are applicable throughout the Group.
The Sustainability Committee was established in 2013 and is the central body for steering
the sustainability strategy, for defining sustainability targets, and for group-wide coordination of sustainability management. The Sustainability Committee is overseen by the Chief
Brand Officer and the Chief Financial Officer. It comprises the Head of Sustainability, the
managers responsible for the divisional functions of Central Services, Investor Relations,
Communication, Logistics, Brand and Creative Management, Operations, Human Resources,
Process Management and Legal Affairs. It also includes the regional manager for the region
of Europe. The functional areas of the Sustainability Committee were divided into the three
working groups Corporate Responsibility, Sustainable Operations and Corporate Culture.
One or more committee members are responsible for these areas. The central functions of
the working group Corporate Responsibility include, for example, monitoring stakeholder
management and corporate citizenship, and sustainability communication. Work in the area
of sustainable operations entails guaranteeing standards for human rights and environmental
standards along the entire value chain. Issues which relate to the cooperation between
companies and conduct in business operations are the responsibility of the working group
on Corporate Culture.
We – Combining Excellence and Sustainability
Strategy and Management
Sustainability Report 2014
26
In 2014, the Sustainability Committee met at intervals of a maximum of two months, in
order to review the progress and success of sustainability activities and to develop sustainability management further with new projects and initiatives. The focus of the meetings
last year was on developing the six fields of action, stakeholder dialog, the initial stages
of developing a materiality analysis, implementing a customer and employee satisfaction
survey, and expansion of sustainability communication. Since the topic of sustainability is
implemented locally across all specialist areas, additional capacities were also discussed
by the Sustainability Committee and adopted. At least one member of the Managing Board
attended each of the meetings. Through attendance at the meetings of the Sustainability
Committee, the Managing Board was always aware of the latest developments in the area
of sustainability. These issues were also debated in the regular meetings of the Managing
Board. Furthermore, the Supervisory Board engaged intensively with activities in the area
of sustainability at its closed meeting lasting two days in September 2014.
HUGO BOSS recently achieved impressive scores with its sustainability performance in
different ratings and rankings. In 2014, HUGO BOSS AG took part in the climate protection
survey held by the international non-profit organization Carbon Disclosure Project (CDP).
It provides companies and cities worldwide with a system that can be used for voluntary
reporting of specific data on its environmental engagement. The Company published aspects
of its energy policy and climate protection, and details of its strategy to reduce group-wide
CO2 emissions on the platform. CDP confirmed that HUGO BOSS has an above-average
awareness of climate change and highlighted the Company as the best new entrant from
the region Germany, Austria and Switzerland.
HUGO BOSS was also listed for the first time in the Sustainability Yearbook published by
RobecoSAM – as an “Industry Mover” – in 2015. The title ranks HUGO BOSS among the
15% of the best companies in its sector as the Company which succeeded in achieving the
greatest improvement in the area of sustainability. This makes HUGO BOSS one of the most
promising players in the area of sustainable business in the textile sector.
HUGO BOSS is listed as
an Industry Mover in the
Sustainability Yearbook
published by RobecoSAM.
We – Combining Excellence and Sustainability
Stakeholder Dialog
Sustainability Report 2014
27
S TA K E H O L D E R D I A LO G
HUGO BOSS believes that meeting the expectations of its most important stakeholders
is not only essential as a business objective, but is also an opportunity for bringing about
social change. Discussing different perspectives and entering into a joint discussion about
challenges and potential solutions can be valuable for all participants. The exchange of views
with relevant stakeholder groups has been actively fostered for many years. It is based on
a stakeholder analysis which has undergone further development during the year under
review to comply with the Standard AA 1000 as well as being supplemented by standardized
processes. HUGO BOSS intends to take an even more intensive approach to stakeholder
management in the upcoming years and is making additional personnel capacities available
for this purpose from 2015.
The involved stakeholder groups include employees, customers, business partners, shareholders and investors, non-government organizations, representatives from business, academia
and government, and from the community at large. Their relationships with HUGO BOSS
and their opportunities for exerting influence make these people extremely important for
the long-term business success of the Company. The selection of individual organizations
is based on an internal audit for relevance, legitimation, and readiness to cooperate.
The main concerns of stakeholders essentially focus on issues of business practices and
compliance with statutory regulations, upholding the rights and interests of members of
the workforce employed directly and indirectly, the development of excellent products, and
environmental protection. Additional topics include special issues relating to animal welfare
and species conservation. Relevant issues also include customer aspirations, enquiries
requesting information from investors, and regulatory proposals. During the year under review,
HUGO BOSS responded to around 150 customer enquiries relating to sustainability, including
direct communication with the media, human rights organizations, consumer protection associations, and animal welfare organizations. In 2014, HUGO BOSS intensified existing contacts
with research institutions, cross-sector initiatives and cooperation with non-government
organizations, and continued to expand its engagement with these stakeholders. Participation
in multi-stakeholder initiatives was also extended, for example, HUGO BOSS joined the Fair
Labor Association (FLA) in 2014 with the objective of becoming more intensively involved
with the latest developments in the area of social compliance.
During the year under review, HUGO BOSS engaged in dialog with organizations concerned
with social commitment, animal welfare, investor relations, and the environment. The
Company adopted a multi-stage process for communicating with the organizations. The
objective was to address concrete issues within the areas of action of the sustainability
strategy. 2015 will also see active dialog being intensified to address relevant issues derived
from the HUGO BOSS materiality analysis. This will involve the presentation of planned
targets and measures. The players involved will give their assessments on the relevance
of the key issues and on their concrete expectations for the future sustainability development of the Company. HUGO BOSS will utilize the additional information to prioritize its
activities in the following year. For example, active cooperation is planned for 2015 with
the International Union for Conservation of Nature (IUCN) within this framework. This
collaboration is intended to develop solutions to master challenges along the supply chain
over the medium and long term.
Membership to the multistake­holder organization
Fair ­Labor Association (FLA).
We – Combining Excellence and Sustainability
Stakeholder Dialog
Sustainability Report 2014
28
0 2 | 0 8 F O R M S O F S TA K E H O L D E R C O M M U N I C AT I O N
(Potential) employees
Intranet, collaboration with universities, HUGO BOSS
home page, social networks, exhibitions and trade
fairs, employee newspaper, works council, company
employee meetings, seminars
Customers
Customer documentation, fashion shows, customer
service (phone or email), customer surveys (including
on sustainability issues), HUGO BOSS home page,
social networks, personal discussions, points of sale
Business partners
Supplier development, audits, personal discussions
Shareholders and investors
Annual report, quarterly report, telephone conferences,
annual general meeting, analysts’ conferences, investor
day, personal discussions in visits to companies,
roadshows and conferences
Society
Press releases, press conferences, information
events, personal discussions
NGOs
Personal discussions, thematic discussions e.g. for
fair compensation, social compliance, environment,
biodiversity, and animal and species conservation
HUGO BOSS implements the dialog with its stakeholders at a number of different
levels. The Company regularly issues timely reports about the business development of
the Group and key strategic and operational initiatives. The objective of these reports is to
ensure maximum transparency and enhance the level of trust received by the Company
within the public domain. Investor relations activities involve continuous communication
with institutional investors, financial analysts and private shareholders. Apart from the
annual press briefing and analysts’ conference on the annual results, conference calls are
held with financial analysts when the interim reports are published for the first and third
quarters, and for the half-year report. An annual Investors’ Day is also held each year when
the Company’s executives discuss the Group strategy and go into an in-depth analysis of all
relevant developments. The Managing Board takes part personally in the press briefing and
analysts’ conference on the financial results, the Investors’ Day and a large number of other
meetings with investors. Whenever the activities and projects of the Company impact the
interests of the public, HUGO BOSS seeks an open and constructive dialog with the parties
involved. One such example was the construction of the distribution center in Filderstadt.
Prior to this facility being constructed and commissioned in 2014, a regular dialog was held
with the local community, the residents, various citizens’ action groups and other interest
groups directly affected by the construction of the warehouse. The Managing Board of
HUGO BOSS regularly joined the discussions held with the local community.
HUGO BOSS also actively promotes continuous communication between the employees
and the Managing Board. A company staff meeting is held once a year. The Managing Board
discusses the strategy and the financial development of the Company with all the employees
of HUGO BOSS AG at the meeting. The Management, the Works Council and the Chief
Human Resources Officer also discuss issues and ideas brought up by the staff members
in this forum. They either submit their questions in writing before the meeting or they may
put questions during the event itself. Every quarter, the Managing Board also informs the
managers of the Company about the financial and strategic development of the Company.
All employees can exchange views and ideas on current issues with the Managing Board by
We – Combining Excellence and Sustainability
Stakeholder Dialog
Sustainability Report 2014
29
going on a discussion forum in the Group’s Intranet. Employee breakfasts are also held on
a regular basis. They provide an opportunity to meet individual members of the Managing
Board in smaller groups and a relaxed atmosphere. An employee survey was also carried
out for the first time in 2014 at HUGO BOSS AG in Metzingen.
HUGO BOSS has been in dialogue with different individual national and international
organizations for animal welfare and consumer protection with the aim of bringing about
continuous improvement in the area of animal welfare. Consequently, one decision taken
by the Company was in the sourcing of merino wool: to give preferential treatment to those
suppliers that are able to verify that the mulesing procedure is not used. In the business year
2014, another decision was taken to stop using angora wool. This is a textile fiber which is
taken from the fur of angora rabbits.
AWA R D S D U R I N G T H E R E P O R T I N G P E R I O D
• Carbon Disclosure Project (CDP): “Best Newcomer in Germany, Austria and Switzerland”
• Inclusion as “Industry Mover” in the Robeco SAM Sustainability Yearbook 2015
• DGNB GOLD Certificate from the German Sustainable Building Council (DGNB) awarded
for the newbuild of the distribution center in Filderstadt
• 2nd place in employer image ranking of German fashion companies in the magazine
Textilwirtschaft
• 10th place for HUGO BOSS Ticino SA in the employer ranking “Best Employer in
Switzerland” (95 evaluated companies)
• Award as “Star Company” in the ranking “Top Internship” of the Clevis Group
• “Quality Seal” in the Corporate Health Awards
M E M B E R S H I P S O F A S S O C I AT I O N S A N D I N T E R E S T G R O U P S
• AFIRM (www.afirm-group.com): cooperation in different projects, formulation of positions
on draft legislation
• DTB (Dialog Textiles and Garments, www.dialog-dtb.de)
• Fair Labor Association (FLA)
• German Fashion Modeverband Deutschland e. V. (www.germanfashion.net)
• Global Social Compliance Programme (GSCP)
• Brand Association (www.markenverband.de)
• Southwest German Textile and Clothing Industry (www.suedwesttextil.de)
• TicinoModa (www.ticinomoda.ch): HUGO BOSS is a member of the committee and the
strategic commission of TicinoModa. The company represents TicinoModa in the EU
PEF (Product Environmental Footprint), a European Union project for T-shirts.
• VDTF (Verein Deutscher Textilveredlungsfachleute, www.vdtf.de) German Association
of Textile Refiners: sponsoring member
S U P P O R T F O R E X T E R N A L S TA N DA R D S , AG R E E M E N T S , A N D I N I T I AT I V E S
• Charter of Diversity (www.charta-der-vielfalt.de) HUGO BOSS is a signatory to the charter.
• German Corporate Governance Code – HUGO BOSS complies with the recommendations
of the “Government Commission of the German Corporate” with few exceptions
Regular communication
with animal protection
organizations.


ENVIRONMENT – PRESERVING
NATUR AL RESOURCES
31 Management Approach
33 Energy and Emissions
37 Water and Waste
38 Logistics
Environment – Preserving Natural Resources
Management Approach
Sustainability Report 2014
31
ENVIRONMENT –
PRESERVING NATURAL RESOURCES
HUGO BOSS also sets corporate targets in the area of environmental
protection. These serve as the driving force for the continuous improvement of environmental aspects in products and processes. The Group
intends to adopt a leading position in the premium and luxury segment
of the apparel sector, and is committed to achieving ambitious targets in
conformity with internationally accredited standards in environmental
protection.
K E Y TA R G E T S
Expansion of the certification
of the environmental
­management ­system
in ­accordance with ISO 14001
to include all the Group’s
own production locations by
Expansion of the certification
of the environmental
­management system
in ­accordance with ISO 14001
at the production location
Morrovalle (I) in
Reduction
of greenhouse gas
emissions by
2015.
in relation to Group sales
by 2020.
2020.
100%
Reduction of water
consumption in relation
to Group sales by
of the electricity used in all
its own retail businesses in
the German-speaking regions
of ­Germany, Austria, and
­Switzerland from renewable
sources by 2015.
40%
Expansion of the certification
of the energy management
system in ­accordance
with ISO 50001 at the
Coldrerio location (CH) in
30%
1
Sourcing
by 2020.
2
2015.
For Scope 1 and 2 in accordance with the GHG Protocol and in comparison with the baseline year 2010.
In comparison with the baseline year 2010.
1 2 M A N AG E M E N T A P P R OAC H 1
HUGO BOSS believes that making environmental responsibility tangible means pursuing
strategic goals and achieving quantifiable contributions in different areas. The Group is
therefore pursuing the long-term targets of minimizing the impacts of climate change,
protecting natural resources through the application of intelligent concepts and environmentally
friendly technologies, reducing environmental impacts, and contributing to the preservation
of biodiversity. HUGO BOSS focuses particularly on potential impacts of its global supply
chain and implements measures related to the environment at its locations, in transport, with
its partners in all phases of the value chain, and along the entire life cycle of its products.
1
A ll indicators in the section on Environment are based on production, logistics, and administrative locations in Europe,
North America, and the locations in the region Asia/Pacific China.
Environment – Preserving Natural Resources
Management Approach
Sustainability Report 2014
32
Robust environmental management based on the internationally accredited standards
ISO 14001 and ISO 50001 provides assistance in tracking these targets at the local facilities.
Appropriate certifications are carried out at the locations, insofar as the resources involved
are commensurate. A central tool is used to manage environmental management. This tool
is utilized worldwide and makes use of uniform and efficient methods for the protection
of natural resources.
The top priorities for environmental activities during the period under review were
the introduction of the energy management system in conformity with ISO 50001 and
an environmental management system in conformity with ISO 14001 at the location of
HUGO BOSS Textile Industry Ltd. in Turkey. Another focus was on implementation of the
environmental management tool. There were also technical optimizations, in particular at
the production locations and distribution centers of the HUGO BOSS Group.
The responsibility for group-wide environmental protection lies with the Managing Board
of HUGO BOSS and is a priority for management. Compliance with all environmental laws
and taking account of environmental perspectives in all business decisions is an integral
component of all business activities of HUGO BOSS. The environmental policy provides
a framework for the details and outlines the requirements for environmental performance
at the Company’s own locations, with suppliers and in product development. The policy
defines arrangements for the following thematic areas at HUGO BOSS locations:
•
•
•
•
•
•
Energy and energy efficiency
Water and resource consumption
Waste
Sustainability in procurement
Sustainable buildings
Employee trainings
The environmental policy is complemented by the transport guideline. This formulates
requirements for the improvement process with which the Group continually reduces the
environmental impacts of its logistics processes.
The textile supply chain is characterized by a very high level of complexity and this can
result in some volatile demands for environmental protection. HUGO BOSS addresses these
issues by engaging in dialog with its stakeholders and carrying out appropriate adjustments
in environmental management on this basis. The Company regularly informs its various
stakeholders and the wider public about its environmental strategy, initiatives, and efforts.
The Group utilizes environmental data to check its activities in relation to its objectives, and it
optimizes processes and reports on results. HUGO BOSS works actively with representatives
of internal and external interest groups in order to integrate their knowledge and assessments
into the optimization of its environmental benefits. The employees of HUGO BOSS are a
central target group here. The Group keeps them regularly informed about its activities and
offers trainings with the aim of being able to effectively reduce its environmental impact
over the entire value chain.
Environment – Preserving Natural Resources
Management Approach | Energy and Emissions
Sustainability Report 2014
33
During the reporting period, HUGO BOSS entered into a strategic partnership with the
International Union for Conservation of Nature and Natural Resources (IUCN). The objective
of this collaboration will be the continuous development of the environmental management
of the Company. The two partners will jointly identify and evaluate significant environmental
challenges throughout the value chain of the Group. The IUCN supports HUGO BOSS mainly
in the analysis of existing environmental risks and the identification of potential initiatives
to minimize these risks over the long-term and make a contribution to nature conservation.
Since the beginning of 2015, HUGO BOSS has been involved in a pilot project with the
Natural Capital Coalition (NCC). The aim of the pilot project is to develop a global management standard with the “Natural Capital Protocol”. This protocol is particularly effective in
enabling companies to measure and evaluate their direct and indirect environmental impacts.
HUGO BOSS has made itself available as a joint-venture partner for the first pilot of this
initiative. The Company expects to gain new knowledge from this cooperation, which will
be integrated into the roadmap to excellent environmental protection throughout the entire
value chain
E N E R GY A N D E M I S S I O N S
The Company intends to continually improve the energy efficiency of its buildings. Energy-­
saving measures start for HUGO BOSS in the planning of new building projects. They
continue with measures for enhanced energy efficiency at existing production, administrative
and logistics locations. When renovating and constructing operational facilities, the Company
always ensures that the energy consumption and the associated emissions are reduced
through its own energy supply systems and energy-efficient technologies from the outset.
HUGO BOSS strives to obtain accredited sustainability certifications for all new buildings
in its portfolio of operational facilities. In this context, the Company already defined an
important milestone in 2013. The German Sustainable Building Council (DGNB) conferred
an award on the most recent administrative building in Metzingen for being one of the three
most sustainable office and administrative buildings in Germany. HUGO BOSS has also
received a DGNB Gold Certificate for the new distribution center in Filderstadt-Bonladen.
HUGO BOSS AG generated a total of 91% of its electricity requirement for its location in
Metzingen from renewable energy sources in 2014. HUGO BOSS Ticino (Switzerland) has
already been supplied with all its electricity requirements from renewable energy sources
since 2010. The proportion of electricity from renewable energies throughout the Group
amounted to 47%. HUGO BOSS has installed photovoltaic systems at the headquarters
in Metzingen and at the newly constructed distribution center. In 2014, the Company
generated a total of 543 MWh of electricity from its own renewable energy sources. Two
cogeneration plants which use waste heat at the same locations for heating and cooling
additionally produced 1,094 MWh of energy.
91% of the electricity at the
headquarters in Metzingen
is generated from renewable
energy.
Environment – Preserving Natural Resources
Energy and Emissions
Sustainability Report 2014
34
During the year under review, the energy consumption at the locations assessed amounted
to 75,795 MWh. The increase of 7.4% by comparison with the previous year (70,579 MWh)
results from an expansion of data recording to include additional locations. Based on the
same reporting boundaries as in the previous year, the increase amounted to around 2.9%.
This is partly explained by an increase in production during the year under review. Another
factor was the temporary parallel operation of two additional warehouse facilities when the
new distribution center came on stream in 2014. However, the energy consumption as a
function of sales remained largely constant at around 29.5 MWh a year per EUR 1 million.
0 3 | 0 1 E N E R GY C O N S U M P T I O N (in MWh)
2014
2013 1
2012 1
Direct energy consumption
35,297
33,866
32,984
Indirect energy consumption
40,498
36,713
37,064
T O TA L
75,795
70,579
70,048
Data have been slightly adjusted compared to the Sustainability Report 2013 due to altered data collection and definitions.
This has not led to fundamental changes of trends.
1
The group-wide greenhouse gas emissions amounted to 28,439 tonnes of CO2 in 2014 – an
increase of approximately 9.9% compared with the year-earlier figure (25,885 tonnes of CO2)
or an increase of 1.3% based on the comparable reporting thresholds of the previous year.
Alongside the expansion of the reporting limits, the increase in the context of the expanded
reporting limits of 2014 resulted primarily from the parallel operation of several warehouse
facilities. This parallel operation was discontinued once the newly built distribution center
came on stream and was operating at full capacity.
0 3 | 0 2 G R E E N H O U S E G A S E M I S S I O N S (in t CO2)
2014
2013 1
2012 1
Scope 1 (direct energy consumption)
7,791
7,610
7,417
Scope 1 (fleet consumption)
3,035
2,900
2,751
Scope 1
10,826
10,510
10,169
Scope 2 (indirect energy consumption)
12,374
10,938
11,267
Scope 1– 2
23,200
21,448
21,436
5,239
4,437
4,485
28,439
25,885
25,921
Scope 3 (air travel)
T O TA L Scope 1– 3
Data have been slightly adjusted compared to the Sustainability Report 2013 due to altered data collection and definitions.
This has not led to fundamental changes of trends.
1
Environment – Preserving Natural Resources
Energy and Emissions
Sustainability Report 2014
35
In 2012, the energy management system in accordance with ISO 50001 was introduced
at the location of the HUGO BOSS AG in Metzingen and in 2014 the system was successfully
reaudited. Certification in accordance with ISO 14001 and ISO 50001 was also performed
for the first time at the biggest production facility operated by HUGO BOSS in Izmir. Stricter
energy management is being implemented throughout the Group aimed at a reduction of
energy consumption. The biggest lever for this in the existing portfolio of operational facilities
is provided by technical and organizational optimization.
Significant energy consumption and emissions beyond administrative and production buildings
are mainly created as a result of business trips and employee commuting, and by transport
and logistics. The Group is also continuously striving to reduce its environmental footprint,
as demonstrated by the example of Izmir. A newly introduced tracking system has been
designed to coordinate efficiency for use of taxi and courier trips, as well as company buses.
This system has succeeded in reducing the kilometers travelled to be reduced by 11.6%
compared with the previous year, and this has in turn avoided the associated greenhouse
gas emissions.
03|03 G
R E E N H O U S E G A S E M I S S I O N S T H R O U G H F L E E T V E H I C L E S AT T H E I Z M I R L O C AT I O N
(in t CO2)
Greenhouse gas emissions caused by fleet vehicles1
of HUGO BOSS Textile Industry Ltd.
2014
2013
2012
1,045
1,172
1,379
reenhouse gas emissions in t CO 2 caused by own fleet vehicles as well as taxi and courier trips and company buses
G
of HUGO BOSS Textile Industry Ltd.
1 HUGO BOSS offers its employees working in Metzingen a car-share network operating
within the Company. During the year under review, 176 employees made use of this service
on their daily commute to and from their workplace. The emissions saved as a result of this
initiative have so far amounted to 0.7 tonnes of CO2.
Certification of the biggest
production facility in Izmir
(TR) in accordance with
ISO 14001 and ISO 50001.
Environment – Preserving Natural Resources
Sustainability Report 2014
36
G O L D C E R T I F I C AT I O N O F T H E D G N B:
THE NEW HUGO BOSS DISTRIBUTION CENTRE
GOLD!
FOR HUGO BOSS
HUGO BOSS is setting a new benchmark
with the new distribution center providing
floorspace of 35,000 square meters in
Filderstadt near Stuttgart. This is not only
the biggest facility of its kind in Europe,
the complex has also been awarded the
Gold Standard of the German Sustainable
Building Council (DGNB) for its sustainability
performance.
The objective of this distinguished organization of the construction and real-estate
industry is to promote sustainability in new
buildings and enable standardization. The
overall performance is evaluated on the
basis of different criteria relating to the
environment, economy, process and location
quality. Other factors such as functional and
technical quality are also evaluated. If there
is outstanding compliance with the criteria,
the building receives a certificate in gold,
silver, or bronze.
In 2014, the high-tech building was opened
and with a price tag of EUR 100 million it
is the biggest individual item of capital
expenditure in the history of the company.
Most of the boxes containing flat-packed
garments such as shirts, socks, and ties are
transported automatically in the warehouse
21 meters in height. More than 35 million
items are projected for annual distribution
throughout Europe from this facility.
The overall concept is based on the latest
environmental standards from the planning
stage to initial operation. This includes the
refined cladding design, the use of highquality and low-pollutant materials, and the
selective heating using ceiling-mounted
radiant panels. The location is also advantageous for HUGO BOSS: operating from
Filderstadt allows the Company to achieve
efficient goods flows over maximally short
distances. The building has been awarded
the Gold Standard of the prestigious German
Sustainable Building Council (DGNB) with a
fulfillment level of nearly 90%.
Thanks to selective energy- efficiency
measures, HUGO BOSS has succeeded
in cutting CO2 emissions by more than half
compared with the EnEV reference building
designed in compliance with the Energy
Saving Ordinance. This slashed annual CO2
emissions by approximately 1,414 tonnes
each year. The new building also has its
own photovoltaic system aligned in an
optimum southerly direction. It is made up
of 1,919 solar modules and covers a roof
area of 13,500 square meters generating
480 kilowatts of power at peak performance.
The solar-energy system and a cogeneration
plant generate a projected consumption rate
of some 30%. In this way, HUGO BOSS is
continuing to propagate its line of innovative
architecture and sustainable building planning.
Environment – Preserving Natural Resources
Water and Waste
Sustainability Report 2014
37
WAT E R A N D WAS T E
During the period under review, HUGO BOSS initiated numerous individual measures for
further reduction of water consumption and generation of waste at its most environmentally-relevant locations in Germany, Turkey (Izmir) and in North America (USA and Canada).
The platform for these measures was provided by expansion and implementation of the
Group’s own environmental management tool to include the corresponding water and
material flows, and the definition of location-specific reduction targets. In 2014, systematic
sorting of waste was launched in Izmir in order to achieve maximum possible recycling for
the three categories of textiles, nylon, and paper/cardboard. Cutting operations in production
and the purchased packaging material were further optimized and succeeded in reducing
the use of materials and wastage. Moreover, functional electronic equipment is donated.
Measures for reducing water consumption included renewal of the irrigation system for
landscaped areas at the Metzingen location. At the same time, a start was made in Izmir
on improving the efficiency of irrigation systems through automation and installing systems
for treating rainwater. These measures contributed to reducing water consumption at the
locations in the report by around 2% (on a like-for-like comparison).
0 3 | 0 4 WAT E R C O N S U M P T I O N (in m3)
2014
2014 1
2013
2012
132,648
122,808
125,675
129,532
Data for the reporting period 2014 on the basis of the consolidated reporting units of the reporting period 2013.
1 While most of the waste generated at the registered office in Metzingen is already being
recycled today, disposal in Turkey continues to be through transport to landfill. A project
was launched in 2014 for identifying the first fabric batches that are suitable for recycling
and for which interested purchasers can be found.
0 3 | 0 5 WA S T E VO L U M E BY T Y P E (in t)
Nonhazardous waste
Hazardous waste
T O TA L
1
2014
2013 1
2012 1
3,944
3,685
3,857
28
29 2
14
3,972
3,714
3,871
D ata have been slightly adjusted compared to the Sustainability Report 2013 due to altered data collection and definitions.
This has not led to fundamental changes of trends.
A djusted data due to legal provisions concerning threshold values for the disposal of chemicals.
2 During the period under review, no serious accidents occurred at HUGO BOSS that resulted
in waste or wastewater being discharged inappropriately into the environment. Accordingly,
there were no penalty payments levied for breaches of environmental regulations. A lawsuit
is currently underway in Italy relating to soil pollution. A judgement at the court of first
instance was found in favor of the Company, a judgement in the court of second instance
is expected to be rendered in 2015.
Environment – Preserving Natural Resources
Logistics
Sustainability Report 2014
38
LO G I S T I C S
HUGO BOSS is continually reviewing CO2 emissions in logistics and transport processes
with the objective of reducing them over the long term. A result of this analysis was that the
Company already adjusted its global transport routes in 2012. For example, the use of the
Italian harbor of Trieste as an alternative to the port of Hamburg cut down the distance to
the Group’s logistics centers in Germany. When deliveries are made to warehouses, HUGO
BOSS is increasingly replacing road transport with rail freight. In 2014, the lion’s share of
road transport from northern European ports to distribution centers in southern Germany
was transferred to rail. HUGO BOSS started to implement further optimization by organizing
the future transport of textiles from Asia to Europe on a route from Shanghai to Duisburg
by rail. The first pilot tests for this method of transport will be carried out in 2015 and were
prepared accordingly during the reporting year. Starting in 2016, the transfer from air and
sea freight to rail will continue to be expanded for transport from China.
Since 2013, HUGO BOSS has been supported by an IT system in coordinating approximately 80% of the incoming volume of finished goods. This gave the Company complete
transparency for this section of the supply chain. It permitted consolidation of the dispatch
costs in the country of origin and facilitated higher capacity utilization of the selected method
of transport. With the establishment of a monitoring tool, the Company was successful in
monitoring all non-European transport and structuring it more efficiently.
EMPLOYEES – FAIR ­E MPLOYMENT
AND FOSTERING A CULTURE OF
RESPONSIBILIT Y
40 Management Approach
43 Employment
46 Employee Fluctuation and Turnover
49 Value-Based Corporate Culture
52 Vocational Training and Employee
Development
55 Compensation and Benefits
56 Diversity
58 Occupational Safety
60
Occupational Health Management
Employees – Fair ­E mployment and Fostering a Culture of Responsibility
Management Approach
Sustainability Report 2014
40
EMPLOYEES –
FAIR ­E MPLOYMENT AND FOSTERING
A CULTURE OF RESPONSIBILIT Y
HUGO BOSS aspires to be an attractive employer for its employees in
order to achieve current and future corporate targets. The Company
aims to attract the most talented emerging leaders and employees
with development potential. The most important function of human
resource management across the Group is to recruit future employees,
support and promote employees on an individual basis, and to create an
environment in which team spirit and proactive commitment are valued.
This is facilitated by an open corporate culture, attractive salaries and
a wide range of packages for occupational safety, healthcare, and life
balance.
K E Y TA R G E T S
Revision of the global
­strategy on workplace ­safety,
­occupational safety,
and ­operational health­c are
­management in 2015,
with the aim of establishing
a group-­wide, uniform
standard by
Expansion of employee
survey to
Continuous optimization
of global employee
loyalty, measured by the
­reduction in employee-­
related turnover by
2020
25%
which is evaluated
and controlled using
an indicator system.
by 2020.
1
80%
of the workforce
by 2020, with the objective
of improving employee
satisfaction.
Raising employee
awareness on
­s ustainability issues.
In comparison with the baseline year 2014.
1 M A N AG E M E N T A P P R OAC H
HUGO BOSS would like to consolidate and expand its position as one of the leading
companies in the premium and luxury segment of the global apparel market. In order to
achieve this aim, the key goals of human resources is to recruit qualified employees, develop
them individually, deploy them strategically, and create long-term loyalty to the Company.
Employees – Fair ­E mployment and Fostering a Culture of Responsibility
Management Approach
Sustainability Report 2014
41
The achievements and expertise of employees are a key factor in the success of the international Group. Inspiring and challenging roles, performance-related compensation, and
optimum pathways for development, as well as offerings that facilitate a work-life balance,
contribute to integrating employees effectively on an individual basis. HUGO BOSS assists
its employees in expanding their areas of expertise and their knowledge in all phases of
their career and life.
An open and value-oriented corporate culture which motivates employees to contribute
their experiences is the foundation. The recognition of diversity and equal opportunities
for all employees is an integral part of the daily routine in the Group as well as being
a competitive factor in the international environment. The Code of Conduct defines
more precisely the principles for structuring cooperation within the Company and with
business partners throughout the Group. It can be accessed on the corporate website:
http://group.hugoboss.com/files/Code_of_Conduct.pdf and it is binding for all employees.
The code includes regulations on avoiding conflicts of interest, provides rules governing
data protection, health protection and occupational safety, and it prohibits corruption and
bribery. HUGO BOSS is also committed to the prohibition of child and forced labor in all its
own business units, and with its business partners. Managers are responsible for joining
forces with employees to create a culture defined by the corporate values within the Group.
Human resources bundles its activities into six strategic fields:
Values: The HUGO BOSS values of quality, respect, innovation, passion, and cooperation
are derived from the corporate vision and form the foundation for daily cooperation in an
international environment.
Culture: Developing a role model for the corporate values enables a culture of openness
and creativity, allowing every individual to make the best use of their full potential and make
a contribution to the success of the Company.
Talents: We recruit the best employees with the required expert skills, we want them
to stay with the Company for the long term, and we support them systematically in their
career development.
Diversity: Diversity at HUGO BOSS is a tangible reality. It entails acknowledging cultural
diversity and guaranteeing equal opportunities for everyone.
Health and safety: We support our employees and managers world-wide with a comprehensive portfolio of sports and health packages, and a special program for reconciling the
demands of career and family. We thereby promote an awareness of an appropriate work-life
balance. We also ensure that together with our employees, we create a healthy and safe
working environment.
Standards: We guarantee compliance with universal human rights and internationally
acknowledged work and social standards. We base our approach on the conventions of
the International Labor Organization (ILO) and the General Declaration on Human Rights
of the United Nations (UN).
The Code of Conduct
is ­binding for all employees
throughout the world.
Employees – Fair ­E mployment and Fostering a Culture of Responsibility
Management Approach
Sustainability Report 2014
42
One of the focuses for 2014 was on further reorganization and optimization of group-wide
processes in personnel selection and development. Merger of the two core areas
personnel management and personnel development was one of the measures implemented.
This strengthens the role of the personnel department as an internal business partner for
business and specialist areas within the Group. The future will see other units also being
able to access even better standards and continuously adapted tools in order to cover their
requirements. The personnel management system, which encompasses personnel administration and organizational management, was implemented in other European and Asian
regions. The group-wide knowledge platform was supplemented by additional interactive
functions in order to facilitate communication between employees on internal training courses
and instruction programs. The need for a system-based solution was also formulated, which
permits improved structures and measurement of advanced training measures.
The talent management solution introduced in Germany in 2013 was rolled out to companies
in Switzerland during the year under review and deployment in Turkey is planned for 2015.
Over the coming years, the tool will be rolled out globally and this will support the objective
of developing employees internationally and actively managing feedback processes.
The human resources department also developed the group-wide innovation and ideas
management further and set up a digital platform for submitting ideas from employees. This
is to be expanded functionally over the coming years and made available in other regions.
The human resources department systematically analyzes the short-term, medium-term
and long-term requirements for personnel and other personnel development opportunities
in order to recruit employees selectively for all divisions and reinforce their loyalty to the
company. Findings on relevant impacts of megatrends, for example demographic change,
support the needs assessment of talented emerging leaders. When appointments are made
to posts which require particular expertise, the human resources department communicates regularly with the executive management. An employee recommendation program
was re-established in the business year 2014, which provides a reward for the successful
mediation of new colleagues by employees.
In the business year 2014, an important focus was placed on support for the strategic
expansion of the Group’s own retail trade. In order to achieve this, the human resources
department developed conceptual ideas and implemented new standards and processes
for personnel management in the retail sector.
A manual is now available in own stores of subsidiaries which documents the internal require­
ments and objectives relating to the issues of employee recruitment, development and
motivation. Furthermore, the store managements in own businesses of HUGO BOSS AG and
HUGO BOSS UK Ltd. have been using a special system to plan and manage their personnel
deployment to meet needs using a special system since 2014. The long-term solution is
supposed to be implemented for all own stores throughout the world.
Employees – Fair ­E mployment and Fostering a Culture of Responsibility
Management Approach | Employment
Sustainability Report 2014
43
The specialist career provides a new career path for particularly motivated and talented
employees in retail. A transparent and targeted monetary development is established by
setting up clearly defined job profiles and defining external salary benchmarks. On the
basis of specific job profiles, employees are promoted individually, based on their strengths
and areas of expertise. The specialist career therefore offers comparable development
opportunities to a management position.
HUGO BOSS also defines high standards in retail training and has expanded this area
during the year under review. Complementing the vocational school and their placement
in the store, all the apprentices in retail at HUGO BOSS AG have access to system-based
learning support. They have a learning slot of at least 2.5 hours a week in which to extend
their knowledge and continuously expand their career training. This package was further
developed in the year under review.
E M P LOY M E N T
At the end of the business year 2014, 13,0431 people were employed by HUGO BOSS at
the locations analyzed. Compared with the previous year, the number of employees rose by
4.6% in relation to the consolidated financial statements presented in the report for 2013.
Increasing number
of ­employees due to
the ­positive business
development.
0 4 | 0 1 T O TA L W O R K F O R C E (headcount, in %)
2012
Men
2013 2,482
2,501
4,227
4,288
2014 1
2,600
Women
T O TA L
Change (in %)
6,709
4,501
6,789
7,101
+ 1.2
+ 4.6
1
ata have been slightly adjusted compared to the Sustainability Report 2013 due to altered data collection and definitions.
D
This has not led to fundamental changes of trends.
1
U nless otherwise indicated, the data for 2014 here and in the following charts encompass permanent and temporary
employees (headcount) on the balance sheet date December 31, 2014. The data for 2012 and 2013 only relate to
permanent employees.
Employees – Fair ­E mployment and Fostering a Culture of Responsibility
Employment
Sustainability Report 2014
44
The increasing number of employees is due to the positive business development and the
greater demand for employees, especially in the Group’s own retail business. The majority
of the new employees in this area were recruited in Europe. A breakdown into regions
provides the following distribution:
0 4 | 0 2 E M P L OY E E S BY G E N D E R A N D R E G I O N (headcount, in %)
Germany
2,159 (64.2)
1,203 (35.8)
Rest of Europe
3,667 (59.5)
2,497 (40.5)
Americas
882 (47.0)
995 (53.0)
Asia / Pacific
1,162 (70.9)
478 (29.1)
7,870 (60.3)
T O TA L
5,173 (39.7)
Women Men
At the end of the business year 2014, more than half of the workforce was employed
as office-based employees, of which 11.7% were in management positions and another
43.6% were salaried employees. The proportion of employees working in the industrial
sector was 34.4%.
0 4 | 0 3 E M P L OY E E S BY C AT E G O R Y A N D R E G I O N
Management
White-collar
workers
Germany
348
Rest of Europe
644
Americas
Asia / Pacific
1,523
Region (headcount)
T O TA L
Blue-collar
workers
Apprentices
Temporary
workers
1,616
689
92
617
1,740
3,483
16
281
301
1,004
254
0
318
230
1,322
67
0
21
5,682
4,493
108
1,237
18.4
Region (in %)
Germany
10.4
48.1
20.5
2.7
Rest of Europe
10.4
28.2
56.5
0.3
4.6
Americas
16.0
53.5
13.5
0.0
16.9
Asia / Pacific
14.0
80.6
4.1
0.0
1.3
T O TA L
11.7
43.6
34.4
0.8
9.5
Employees – Fair ­E mployment and Fostering a Culture of Responsibility
Employment
Sustainability Report 2014
45
The proportion of employees with a full-time contract was approximately 84% on December 31, 2014.
0 4 | 0 4 E M P L OY E E S BY E M P L OY M E N T R E L AT I O N S H I P A N D R E G I O N (headcount, in %)
Germany
2,717 (80.8)
645 (19.2)
Rest of Europe
5,450 (88.4)
714 (11.6)
Americas
1,321 (70.4)
556 (29.6)
Asia / Pacific
1,464 (89.3)
176 (10.7)
10,952 (84.0)
T O TA L
2,091 (16.0)
Full time Part time
In addition to employees with an unlimited contract, the Company also has interns, diploma
students, student employees, and agency staff. In 2014, 2,053 employees were employed
on short-term contracts.
0 4 | 0 5 E M P L OY E E S BY W O R K C O N T R AC T T Y P E A N D R E G I O N (headcount, in %)
Germany
2,532 (75.3)
830 (24.7)
Rest of Europe
5,945 (96.4)
219 (3.6)
Americas
1,877 (100)
0 (0.0)
Asia / Pacific
636 (38.8)
1,004 (61.2)
10,990 (84.3)
T O TA L
2,053 (15.7)
Unlimited Limited
Employees – Fair ­E mployment and Fostering a Culture of Responsibility
Employee Fluctuation and Turnover
Sustainability Report 2014
46
E M P LOY E E F LU C T UAT I O N A N D T U R N OV E R
For the first time, details of age structure of new appointments and departing staff were
available. However, the reporting scope varies here and does not include apprentices and
employees working on a temporary basis (interns, diploma students, agency staff). In the
business year 2014, 3,102 new employees were appointed at the locations analyzed. The
gender ratio was relatively balanced: 55.7% were women, 44.3% men.
0 4 | 0 6 N E W H I R E S BY R E G I O N (headcount)
Region
Germany
216
Rest of Europe
1,514
Americas
565
Asia / Pacific
807
T O TA L
3,102
0 4 | 0 7 N E W H I R E S BY G E N D E R A N D R E G I O N 1 (headcount, in %)
Germany
134 (62.0)
82 (38.0)
Rest of Europe
Americas
Asia / Pacific
T O TA L
Women Men Data without apprentices and temporary workers.
1 837 (55.3)
677 (44.7)
226 (40.0)
339 (60.0)
531 (65.8)
276 (34.2)
1,728 (55.7)
1,374 (44.3)
Employees – Fair ­E mployment and Fostering a Culture of Responsibility
Employee Fluctuation and Turnover
Sustainability Report 2014
47
In 2014, 64.4% of the new employees were below the age of 30, 25.9% were aged between
30 and 40, 6.9% between 40 and 50, and 2.8% were more than 50 years old.
0 4 | 0 8 N E W H I R E S BY AG E A N D R E G I O N 1
Region (headcount)
< 30
30 ≤ x < 40
40 ≤ x < 50
≥ 50
92
83
31
10
1,037
378
84
15
348
123
58
36
Germany
Rest of Europe
Americas
Asia / Pacific
521
219
42
25
1,998
803
215
86
Germany
42.6
38.4
14.4
4.6
Rest of Europe
68.5
25.0
5.5
1.0
Americas
61.6
21.8
10.3
6.4
Asia / Pacific
64.6
27.1
5.2
3.1
T O TA L
64.4
25.9
6.9
2.8
T O TA L
Region (in %)
Data without apprentices and temporary workers.
1 Over the same period, 2,911 employees left the Company. Out of these employees, 2,050
employees left of their own accord, and this corresponds to an employee-related turnover
rate of 17.5%. The Company is working proactively on reducing the very high turnover in retail
which is typical of the market in various regions. The turnover rate for all cases was 24.9%.
0 4 | 0 9 T U R N OV E R BY R E G I O N 1 (headcount)
Germany
210
Rest of Europe
1,282
Data without apprentices and temporary workers.
1 Asia / Pacific
859
T O TA L
2,911
Americas
560
Employees – Fair ­E mployment and Fostering a Culture of Responsibility
Employee Fluctuation and Turnover
Sustainability Report 2014
48
0 4 |10 T U R N OV E R BY G E N D E R A N D R E G I O N 1 (headcount, in %)
Germany
125 (59,5)
85 (40,5)
Rest of Europe
720 (56,2)
562 (43,8)
Americas
248 (44,3)
312 (55,7)
Asia / Pacific
594 (69,2)
265 (30,8)
1.687 (58,0)
T O TA L
1.224 (42,0)
Women Men Data without apprentices and temporary workers.
1 0 4 |11 T U R N OV E R BY AG E A N D R E G I O N 1
Region (headcount)
< 30
30 ≤ x < 40
40 ≤ x < 50
≥ 50
48
98
34
30
Rest of Europe
755
409
92
26
Americas
292
131
73
64
Germany
Asia / Pacific
559
234
39
27
1,654
872
238
147
Germany
22.9
46.7
16.2
14.3
Rest of Europe
58.9
31.9
7.2
2.0
Americas
52.1
23.4
13.0
11.4
T O TA L
Region (in %)
Asia / Pacific
65.1
27.2
4.5
3.1
T O TA L
56.8
30.0
8.2
5.0
Retirement
Other 2
T O TA L
Data without apprentices and temporary workers.
1 0 4 |12 T U R N OV E R BY R E A S O N A N D R E G I O N 1 (in %)
Employee-­
specific
Germany
Employer-­
specific Redundancy
4.8
2.7
0.0
0.3
0.1
7.9
Rest of Europe
15.6
5.0
0.3
1.0
0.1
21.9
35.9
Americas
22.1
13.5
0.1
0.1
0.2
Asia / Pacific
41.1
8.7
3.1
0.1
0.0
53.1
T O TA L
17.5
6.1
0.6
0.6
0.1
24.9
Data without apprentices and temporary workers.
Other: death, emigration.
1 2 Employees – Fair ­E mployment and Fostering a Culture of Responsibility
Employee Fluctuation and Turnover | Value-Based Corporate Culture
Nachhaltigkeitsbericht 2014
49
0 4 |13 T U R N OV E R R AT E BY R E G I O N 1 (in %)
Germany
7.9
Rest of Europe
21.9
Americas
35.9
Asia / Pacific
53.1
T O TA L
24.9
Data without apprentices and temporary workers.
1 VA LU E - B AS E D C O R P O R AT E C U LT U R E
The Company’s corporate philosophy “commit” is made up of the Company’s vision
“HUGO BOSS inspires people towards success” and the values of quality, passion, respect,
cooperation, and innovation. “commit” therefore reflects the enterprise culture and the
basis for daily cooperation at HUGO BOSS.
RESPECT.
QUALITY.
PASSION.
In 2012, the values of employees and managers were developed in workshops. During the
year under review, the human resources department implemented various measures on
the international level.
INNOVATION.
COOPERATION.
In 2014, one focus of activities was on expanding knowledge and innovation management. For example, an online platform was implemented on which employees are able to
exchange ideas and proposals for improvement. The best ideas were given awards and
implemented. The EVOLUTION initiative was launched in 2013 and intensified during the
reporting period. HUGO BOSS trains selected employees from all areas of the value chain
in the organization as so-called “EVOLUTION Managers”. The focus of their function is on
analyzing and optimizing company processes, as well as providing assistance to change
projects for implementing holistic optimization measures. They also pass on their knowledge
to colleagues and act as knowledge multiplicators in the Company within the framework of
the Continuous Improvement Process (CIP). This creates a fast-growing network of specialists
which contributes to achieving cost savings by increasing the efficiency of processes. So
far, 20 Evolution Managers have been trained in a process lasting 20 days. These have in
turn trained a further 35 colleagues in short training sessions.
HUGO BOSS aims to offer its employees an attractive and inspiring environment in
return for motivation and creativity. In past business years, several anonymous staff surveys
were carried out at HUGO BOSS Ticino in order to assess how the workforce perceives
this environment, their areas of work, and the Company. During the year under review, this
survey was also conducted for the first time at HUGO BOSS AG. The participant rate of
around 70% and the overall satisfaction of nearly 80% demonstrate the commitment and
the high level of satisfaction of the workforce1. The respondents evaluated as extremely
well implemented the issues of fairness with respect to sexual orientation, the maintenance
of physical safety, and fairness to cultural origin. They identified a need for improvement
in areas like optimization of processes. The human resources department discussed the
results with employees and managers in meetings and workshops from each specialist
1
A ll industrial workers, office staff and apprentices were able to take part in the staff survey, if they had been working
at HUGO BOSS AG (Germany) for longer than three months on the reference date of June 30, 2014. This corresponds
to 2,719 employees.
80% of the surveyed
­employees are satisfied
to very satisfied.
Employees – Fair ­E mployment and Fostering a Culture of Responsibility
Value-Based Corporate Culture
Sustainability Report 2014
50
area, and measures for implementing the feedback are going to be initiated. In future, the
survey is going to be repeated on a regular basis and carried out in other regions. 80% of
the workforce should have been surveyed by the business year 2020.
Communication between management and employees is actively promoted and carried
out over a variety of different communication pathways. In compliance with the conventions
of the International Labour Organization (ILO), HUGO BOSS respects the right of employees
to join organizations which represent their interests. Naturally, HUGO BOSS complies with
the right to collective bargaining negotiations within the framework of the relevant national
legislation. Employees throughout the Group are provided with timely information about
fundamental changes in compliance with the statutory requirements under regional legislation.
At many locations, an intensive dialog takes place with employee representatives. The staff
council at HUGO BOSS AG issues an invitation to an annual company staff meeting at which
the Managing Board discusses the strategy and financial development of the Company.
Within this framework, the Managing Board, the works council and human resource officer
provide answers to questions and ideas from employees. These are submitted in writing
in advance or during the course of the meeting. The Managing Board also updates the
managers in the Company about the financial and strategic development of the Company
every quarter. The managers are required to pass on this information to their employees
afterward. All employees can exchange views on current issues with the Managing Board
in a discussion forum that takes place in the Group’s dedicated Intranet. A staff breakfast is
also held on a regular basis with individual members of the Managing Board. This provides
an opportunity to meet individual members of the Managing Board in smaller groups and
a relaxed atmosphere.
During the year under review, the working conditions for 41.4% of the employees were
regulated by collective bargaining agreements (collective wage agreements and company
agreements) with unions or company employee representative bodies. Appropriate provisions
were established in particular relating to working hours, compensation, and occupational
safety and health. Collective bargaining agreements on employment relationships were
applied for 100% of the employees at HUGO BOSS AG. Agreements are also in place at the
following companies: HUGO BOSS Switzerland Retail AG, HUGO BOSS S & A Italia S. p. A .,
HUGO BOSS France SAS, HUGO BOSS Cleveland, Inc., HUGO BOSS Fashions, Inc., and
HUGO BOSS Australia Pty. Ltd.
Employees – Fair ­E mployment and Fostering a Culture of Responsibility
Sustainability Report 2014
51
A GLOBAL AND INSPI R ING COR POR ATE CULTURE
“commit” embodies the mission statement
of HUGO BOSS: It comprises the corporate
vision and mission which highlight the
trajectory of the Group, and the values which
form the foundation for daily cooperation and
therefore the enterprise culture.
As an internal hallmark of the HUGO BOSS
mission statement, “commit” enjoys a
high level of awareness among the entire
workforce. Following its development and
introduction over recent years, the goal in
the business year 2014 was to continue
establishing “commit” among the employees.
A further objective was to make use of
the activities as a platform to present the
sustainability strategy to the employees and
connect it with the key message of “commit”.
T his objective was implemented at
HUGO BOSS by inviting employees to special
workshops. Particularly new employees,
but also interested employees from various
company divisions participated in one of the
events, held every two to three months at
the head office in Metzingen and at European
locations; familiarizing themselves with the
philosophy, the corporate values, and the
sustainability strategy.
For example, up to 30 participants developed
their individual understanding of the values
in interactive workshops lasting around three
hours. This revealed that respect for many
employees meant talking to colleagues and
contacts on an equal level.
Passion in turn can mean working with
dedication and enthusiasm and at the same
time having enough time for family, friends,
and personal interests. Participants also
emphasized that they often find it easier to
get assignments done, if they are working
together in a team.
A second part involved employees becoming
familiar with the six fields of action in the
HUGO BOSS sustainability strategy. This
involved a tangible presentation of the targets,
which the Company would like to achieve by
consistently making the values a reality in
everyday business. It also included indicators
as to how each individual employee could
play an active role in target attainment. Developing a sense of awareness about making
sustainable action a reality in the everyday
lives of each individual received an extremely
positive reception from the majority of the
participants. An additional schedule of dates
will be offered up until the end of 2015. The
next stage involves HUGO BOSS establishing
workshops with subsidiaries in the American
and Asian regions.
In order to increase employee awareness,
HUGO BOSS has extended “commit” beyond
workshops to presenting the concept with a
uniform design and profile, in order to focus
on engagement with the corporate values.
Interactive offers such as the HUGO BOSS
“Value Campaign” enabled employees to
complement corporate values on postcards
with personal ideas and statements, and
then link them with their own life.
Employees – Fair ­E mployment and Fostering a Culture of Responsibility
Vocational Training and Employee Development
Sustainability Report 2014
52
VO C AT I O N A L T R A I N I N G A N D E M P LOY E E D E V E LO P M E N T
A key element of human resources work at HUGO BOSS is to recruit the best employees,
create loyalty over the long term, and develop them continuously. The selection of an applicant
for a job profile is based on a large number of different criteria. Specialist qualification is the
primary criterion. The fundamental objective of the HUGO BOSS Group is to appoint both
local and international employees at all locations. Naturally enough, a lot of the employees
working at a particular location come from the corresponding region.
HUGO BOSS invests in vocational training for young people, in order to cover the need
for skilled employees over the long term. The Company provides a broadly based package
of training vocations and dual courses of study with training in the Company and study
at university. During the training period, HUGO BOSS places great emphasis on general
and specialist career and development opportunities, for example in the form of practical,
job-oriented projects, training sessions, and secondments abroad in an international Group
company. Within the human resources department, a separate team deals exclusively with
the topic of talented young people. At least one training officer is available for each specialist
area. The officer supports young employees when they are on practical placements, gives
them assignments to carry out, and holds feedback discussions.
The Company works closely together with regional, national, and international universities
in order to identify talented candidates at an early stage and recruit them to the Company.
HUGO BOSS also communicates with students in schools and universities on a regular basis.
For example, HUGO BOSS AG maintains a close relationship with Reutlingen University and
has been working with the State Fashion School in Stuttgart since 1986. At an international
level, the company launched a joint venture with Parsons The New School for Design in
New York in 2014 and is in close contact with the Central Saint Martins College of Art and
Design, and Bocconi University in Milan. HUGO BOSS Australia Pty. Ltd. has a link with
the Melbourne College of Fashion, and in the United Kingdom there is a joint venture with
the London College of Fashion and Westminster College.
Recruiting talented
­employees at an early stage
through collaboration
with universities.
Employees – Fair ­E mployment and Fostering a Culture of Responsibility
Vocational Training and Employee Development
Sustainability Report 2014
53
Furthermore, HUGO BOSS enables a large number of young talents to gain work experience
in different areas on internships. In 2014, HUGO BOSS made arrangements for internships
to accommodate nearly 400 people. A strategic promotion program allows outstanding
interns to extend their time within the Company, in order to develop their talents further
and allow them to develop an affinity for HUGO BOSS with the objective of recruiting them
as qualified employees at a later stage.
The employer branding campaign was launched in 2013 and it positions HUGO BOSS as
an attractive employer in the marketplace. This campaign was developed further during the
course of the last business year. This further development is reflected in the revised career
website and in the introduction of a new applicant management system.
The Group aims to improve the knowledge and skills of its employees with a varied program
of career training and development for personnel which is based on a transparent model
of expertise. This increases the performance of the organization overall and enhances
the motivation of individual employees. All supervisors hold annual structured feedback
interviews with their employees with the aim of evaluating the performance, expertise,
and development potential of each individual and providing transparent documentation
of these areas. The interviews review the functions and personal targets in the past and
record them for the coming year. The training and advanced training requirement derived
from the interviews is defined together with the employee for setting individual targets. In
2014, a total of 6,483 employees underwent talent and performance assessment1 at the
locations that were analyzed. This amounts to 54.9% of the employees. The interviews
have been system-based in Germany and since 2014 include all Swiss companies. In all
other reporting companies, they are paper-based. The roll-out of the talent management
system is planned for other markets.
The HUGO BOSS University delivers a broadly based and versatile portfolio of training
and career-training opportunities. The portfolio is intended to build up, consolidate and
improve personal, specialist and management-related expertise. Alongside a large number
of classroom-based training sessions, online-based training is being used increasingly,
particularly in own retail outlets. This enables uniform career training of employees to be
carried out globally. The blended learning approach is applied here, thus providing an optimal
combination of online and classroom training.
The quality of early-career and advanced training measures at HUGO BOSS is continually
being optimized. Training efficiency incorporates formalized processes to support review
and ensure the success of early-career and advanced training measures. All training
sessions offered online are completed with a knowledge test. Supervisors and employees of
HUGO BOSS AG work together to define targets for selected advanced training measures in
the area of personality development, and achievement in this area is reviewed retroactively.
1
Data consider only white-collar and blue-collar employees.
Employees – Fair ­E mployment and Fostering a Culture of Responsibility
Vocational Training and Employee Development
Sustainability Report 2014
54
In 2014, online training courses were held in 13 different languages on the subject areas of
corporate identity, product, sales, operational management and requirements for compliance,
workplace safety and occupational safety. The online training offering at the analyzed
locations 1 was successfully completed over 32,400 times in 2014. 81% of the employees
working in retail and registered for training sessions took part in online sessions. The
program of flexible, self-directed learning was further expanded by the mobile learning app
in own retail. HUGO BOSS AG also equipped its own stores with tablet PCs. All employees
are given the opportunity to find out about different thematic areas in a flexible approach
and complete online training sessions. This allows the newly acquired knowledge to be
implemented promptly and effectively.
In 2014, 2,246 classroom-based training sessions were carried out at the analyzed
locations. Uniform presentation of training hours for each employee on a global level in the
reporting year was not possible for administrative reasons. HUGO BOSS is planning the
introduction of a system-based learning management solution, which should enable this
indicator to be presented again in the future.
All employees from HUGO BOSS must comply with the applicable corporate-wide Code
of Conduct and supplementary, specific compliance rules. For example, employees who
are in contact with external business partners receive special training sessions on compliance with statutory regulations. During the year under review, 5,026 employees (2,982 in
online training sessions and 2,044 in classroom-based training sessions) received training
on compliance topics and were familiarized with the rules relating to human rights, which
raised their awareness on the need for compliance.
As an international company, HUGO BOSS offers its employees a broad range of responsibilities and assignments in different regions. The career and development opportunities
for individuals are systematically enhanced by opportunities to move to other departments
and functions, expansion of functional responsibilities, or promotion to a management
position. Employees who are interested in an international career at HUGO BOSS are able
to access global internal job vacancies and they are actively supported on their career
journey. Existing processes and offers for employees working abroad will be an increasing
focus for the human resources department in the future. HUGO BOSS AG offers extensive
support programs for employees who are planning to retire, so that they are in a position
to structure the transition to retirement in accordance with their individual needs. This also
includes pre-retirement planning.
1
Data do not include the supplementary requirements for compliance, workplace safety, and occupational safety.
32,400 online training courses
completed successfully on
a range of different issues.
Employees – Fair ­E mployment and Fostering a Culture of Responsibility
Compensation and Benefits
Sustainability Report 2014
55
C O M PE N SAT I O N A N D B E N E F I T S
The compensation system in the HUGO BOSS Group is based on fair and transparent
rewards for employees and is designed to promote a culture of motivation and commitment.
The platform for this compensation system is provided by job profiles for each specialist
and managerial career. The companies operating at international locations base their pay
structures on the corresponding national statutory framework conditions.
The compensation for employees in Germany employed under collective payscale agreements
is based on the collective payscale agreement for the garment industry in south-western
Germany. Personnel with retail jobs are paid in accordance with the German retail collective
payscale agreement. All employees (with the exception of departmental, section, and all
executive employees) participate in the corporate success of HUGO BOSS AG through
an annual bonus payment. The amount of the payment is regulated through a transparent
calculation formula. All employees working under a collective payscale agreement are
entitled to an annual bonus payment.
Non-payscale employees receive a bonus in addition to their basic salary. Half of this bonus
is linked to corporate targets and half to the achievement of individual qualitative and quantitative targets. HUGO BOSS offers departmental and section managers a performance-based
compensation model in the form of a mid-term bonus geared toward motivating them to
cooperate on longer-term, sustainable corporate development. The bonus program is based
on an assessment horizon over a number of years. The amount of the mid-term bonus
is calculated from the attainment score for the corporate targets which were previously
defined by the Managing Board.
HUGO BOSS AG rewards long-serving employees from ten years of working for the
Company. They receive a number of benefits including special payments which are paid out
in incremental amounts after 10, 25 or 40 years of service. When employees get married,
the Company also pays a one time bonus.
In general, HUGO BOSS provides comprehensive company benefits for its employees at
all sites. In Europe, Asia, and Australia, virtually all the packages are applicable, irrespective
of the type of contract, while at locations in the USA they only apply to employees paid on a
full-time basis. However, the benefits generally exceed the country-specific regulations and
include, for example, life and occupational disability insurance, parental leave, health-related
benefits, and retirement pension.
HUGO BOSS AG concludes a mandatory employer-financed, company-based direct pension
plan for employees who have worked with the Company for longer than six months.
HUGO BOSS AG offers employees the opportunity for building up additional retirement
provision through the company-based direct pension plan. Furthermore, all employees are
entitled to a travel cost allowance, purchase of HUGO BOSS products at favorable prices,
and participation in the art and cultural offerings that form part of sponsorship activities.
Employees – Fair ­E mployment and Fostering a Culture of Responsibility
Diversity
Sustainability Report 2014
56
DIVERSITY
As a company operating in the international environment, diversity is naturally part of the
corporate culture at HUGO BOSS. The Company promotes equal opportunities for all its
employees during the course of its day-to-day activities – irrespective of nationality, gender,
religious and political convictions, sexual orientation, age, or potential disability. HUGO BOSS
is convinced that diversity in the workforce exerts a positive impact on corporate culture
and is an attribute creating a more differentiated profile. This fundamental conviction is also
reflected in the corporate values which have been further reinforced by workshops and
measures to raise awareness at various levels of the Company during the course of the
year under review. The Group highlighted the high status occupied by diversity within the
Company with its accession to the “Charter of Diversity” in 2008.
Equal treatment of men and women is deeply rooted in the self-image of HUGO BOSS.
The Company strives to create a balance between genders at all levels. During the year
under review, the proportion of female employees in the Group was 60.3%, 45.8% at
management level, and 58.3% among apprentices. In 2014, one woman was represented
on the Supervisory Board of HUGO BOSS. The Company intends to have three female
members on the Supervisory Board from 2015.
0 4 |14 M A N AG E M E N T L E V E L BY W O M E N A N D M E N (headcount, in %)
Management level
Level 1
0 (0.0)
3 (100.0)
Level 2
9 (20.9)
34 (79.1)
Level 3
83 (40.5)
122 (59.5)
Level 4
369 (47.4)
410 (52.6)
Level 5
Women 236 (47.9)
257 (52.1)
Men
The Australian subsidiary HUGO BOSS Australia Pty. Ltd. has made a special contribution in
the area of age diversity. During the year under review, an appraisal of its own retail stores
was carried out to see how the proportion of experienced employees could be increased.
The proportion of women
in management positions
within the Group is 45.8%.
Employees – Fair ­E mployment and Fostering a Culture of Responsibility
Diversity
Sustainability Report 2014
57
Fostering the work-life balance between family and career is an important issue that
HUGO BOSS is keen to promote throughout the Group. The Company offers its employees a
varied package and financial support in this area. This is the seventh year that HUGO BOSS AG
has been involved in the nationwide network “Success Factor Family” and the Group offers
its workforce support for families based on four pillars: nursery placement, a financial
allowance, support from a professional family service and vacation care for children. The
employees at the Metzingen location have an option on a total of 35 reserved places in
two daycare nurseries. They also receive financial support for these, as well as alternative
care packages. Additionally, the first vacation care was arranged at the Metzingen location
for 50 employees in December 2014. Due to the consistently positive response it will be
repeated in 2015 and extended to two weeks during summer vacation. An external partner
supports employees free of charge in looking for suitable childcare when parents return to
work after their parental leave.
Nursery places and financial support are also provided at HUGO BOSS AG in Switzerland,
at HUGO BOSS Ticino and at HUGO BOSS International Markets AG. Another module for
combining work and family is promotion of flexible working hours models and the home-office
concept in individual cases. The objective is to further establish the home-office concept
by means of standardized processes in the near future.
In 2014, 311 employees took parental leave at HUGO BOSS AG (Germany), including 279
women and 32 men. Furthermore, 71 women and 31 men returned to work in the year
under review after their parental leave came to an end.
Employees – Fair ­E mployment and Fostering a Culture of Responsibility
Occupational Safety
Sustainability Report 2014
58
O C C U PAT I O N A L SA F E T Y
As a responsible employer, the operational health and safety of its employees is a top priority
for HUGO BOSS. Guaranteeing a healthy and safe working environment contributes to all
employees being able to meet their full potential and demonstrate their abilities on a daily
basis. As an internationally operating company, the Group observes numerous cultural and
statutory requirements on issues relating to occupational safety and health.
Conditions for occupational health and safety are generally applicable throughout the
Company in order to guarantee safe workplaces and workflows. They are applied at all
German locations of the Group.
The workplaces of HUGO BOSS AG are regularly evaluated for specific risks in cooperation
with the company medical officer, the works council, and the health and safety officer.
The employees of HUGO BOSS AG in Germany and Austria are given important training
sessions on health, safety, and ergonomic matters in the form of specific online training,
direct instructions and extensive options for accessing comprehensive information relating
to important content on the Intranet. In the employee survey carried out in 2014, the issue
of occupational safety and health in the workplace was given the best assessment so far
with a positive evaluation of 91% by employees at HUGO BOSS AG in Germany.
At the Turkish subsidiary in Izmir, the employees are also informed about risks in the workplace
through various communication channels, such as articles in the staff newspaper, notices
on a variety of blackboards and a company radio station. HUGO BOSS AG Switzerland,
International Markets AG, S & A Italia S. P. A ., Ticino S. A . and Canada Inc. place particular
emphasis on ergonomic workstations.
An occupational safety committee was set up at HUGO BOSS AG as an advisory committee
which discusses occupational safety and health at regular intervals. The mandate of this
committee is to discuss issues relating to occupational health and safety, accident prevention and work on sustainable solutions. Members of the occupational safety committee
are officers of the company, members of the works council, company medical officers,
specialists in occupational safety and safety officers. There are similar officers at the
locations in Turkey and Italy.
HUGO BOSS has set itself the goal of defining a uniform standard in the area of workplace
and occupational safety, and health. The portfolio is to be optimized on the basis of
existing parameters and applied throughout the world in order to control implementation
and effectiveness over the long term. This optimization process was initiated during the
reporting year. Various subsidiary companies of the Group were surveyed in the course
of a comprehensive survey of current standards and packages. In the course of revising
the strategy on workplace safety and occupational safety, HUGO BOSS will strive to also
report data on selected external contract partners. The goal is to communicate relevant
quantitative data from 2017.
Employees – Fair ­E mployment and Fostering a Culture of Responsibility
Occupational Safety
Sustainability Report 2014
59
During the year under review, there were 162 occupational accidents which in each case
led to absence of more than one working day. This resulted in 1,786 lost days. Furthermore,
101,896 sick days were reported. This corresponds to a sick rate of 3.9% in relation to the
planned annual working days. There were also 10,995 working days lost for other unforeseen
absences. The total absence rate which includes lost days, sick days, and other unforeseen
absences amounts to 4.4%.
0 4 |1 5 W O R K- R E L AT E D AC C I D E N T S BY R E G I O N 1
(Injuries > 1 lost day)
Asia / Pacific
13
Rest of Europe
65
T O TA L
162
Germany
75
Americas
9
Commuting and sport accidents are included, if these are declared as work-related accidents in accordance with local
framework conditions. HUGO BOSS UK Ltd., HUGO BOSS Ireland Ltd. and HUGO BOSS Canada Inc. are not included.
1
Employees – Fair ­E mployment and Fostering a Culture of Responsibility
Occupational Health Management
Sustainability Report 2014
60
O C C U PAT I O N A L H E A LT H M A N AG E M E N T
The operational healthcare management comprises numerous packages and services
which contribute to employees retaining and strengthening their physical and mental health.
The conferment of the Corporate Health Award demonstrates the exceptional commitment
of the Company to the health and performance of its employees. The high standards of
HUGO BOSS in the area of operational health services were rewarded with the “Quality
Seal”. The thematic focuses were on offers relating to fitness, relaxation and family.
An employee health day takes place every year at the head office in Metzingen and at
HUGO BOSS Ticino SA. This is intended to raise the awareness of employees for issues
such as healthy nutrition, physical exercise and stress reduction, and the aim is to foster a
healthy lifestyle. Employees of HUGO BOSS at the Metzingen location receive information
on the various health and fitness packages in and around Metzingen through workshops,
presentations and at information stands – the opportunities available range from sports
and individual nutritional advice, to medical support, counselling, and psychotherapy.
Employees also had access to various consultation and fitness packages at other locations
of the Company, such as HUGO BOSS Ticino SA and HUGO BOSS Australia Pty. Ltd. The
Company provides information on risks in the workplace at locations in Turkey. Employees
can also take advantage of training sessions on stress, diabetes and have health checks.
HUGO BOSS believes that an important lever for maintaining and promoting the health
of its employees lies in structuring workplaces and daily workflows in an employee
and team friendly manner. Structuring the working environment this way is intended to
promote knowledge transfer and communication and simultaneously be compliant with
statutory regulations and guidelines established by employers’ liability associations. The
offices should therefore support a sense of community and creation of identity that is
cascaded to the national subsidiaries. This is reflected in the architectural concepts of
existing buildings and is also taken into account when planning new locations. A unique
working atmosphere in buildings suffused with light, landscaped areas and contemporary,
sustainable architecture, such as the locations of HUGO BOSS AG, HUGO BOSS Ticino SA
and HUGO BOSS Switzerland, also contribute to the well-being of employees. At the head
office in Metzingen, employees have the opportunity to take advantage of a time-out area,
known as the power-napping room.
Many locations of the Group offer corresponding packages in order to guarantee optimum
workflows. A central focus is avoidance of disorders to the musculoskeletal system – this
might be through special strength exercises similar to those at the production site in Izmir
or ergonomic checks at workplaces. An internal ErgoTeam made up of specially trained
employees was established for this purpose at HUGO BOSS Ticino SA in Switzerland.
Awarded with the “Quality
Seal” of the Corporate Health
Award.
PARTNERS –
ACHIEVING JOINT
RESPONSIBILIT Y
62 Management Approach
64 Protecting Human Rights
67 Fair Remuneration
69 Minimizing Environmental Impact
72 Avoidance of Harmful Substances
Partners – Achieving Joint Responsibility
Management Approach
Sustainability Report 2014
62
PARTNERS –
ACHIEVING JOINT RESPONSIBILIT Y
Social compliance and environmental protection are crucial points of
commitment to sustainability in the global supply chain of HUGO BOSS.
The focus is on ensuring compliance with and the advancement of inter­
national standards. HUGO BOSS is committed to successful cooperation
with its partners and intends to play a leading role in giving the textiles
supply chain a sustainable structure in the future.
K E Y TA R G E T S
Our strategic partners
join a social
compliance initiative by
2020
as part of their sustainability
strategy.
In 2015 we define
the environmental
performance levels
according to GSCP
for all our vendors and
all strategic vendors
will have achieved
the defined performance
level by 2020.
In order to improve
the social standards
in our supply chain,
80%
of our procured volume
will be sourced
from vendors who will
achieve an overall
scoring „­satisfying“
or better verified
in social compliance
audits until 2020.
Our strategic partners
introduce a control system
for their supply chain by
2020
and take responsibility
for their partners, including
an own code of conduct.
M A N AG E M E N T A P P R OAC H
A sustainable framework for procurement and production processes is absolutely essential for
our Company given its international production and business operations. The Group produces
a large proportion of its suits, jackets, and trousers, as well as women’s apparel at its own
production facility in Turkey. It uses this know-how to develop production technologies and
quality standards which can also be transferred to the partners working for HUGO BOSS
in the contract processing sector. HUGO BOSS pursues the highest standards in the areas
of workplace safety and environmental protection, as shown in the sections on Employees
and Products.
Partners – Achieving Joint Responsibility
Management Approach
Sustainability Report 2014
63
Apart from the Group’s own production, a large proportion of the total procurement volume
amounting to 80% is attributable to products which were manufactured by independent
suppliers in contract manufacturing or sourced as merchandise. HUGO BOSS carries out
careful selection of suppliers and is committed to capacity building in a relationship of cooperation and a spirit of trust. The Company pursues a policy of building up strategic supplier
relationships over the long term, which are based on a platform of international standards.
HUGO BOSS and its suppliers are committed to upholding human rights and complying
with internationally recognized labor and social welfare standards in accordance with
the conventions of the International Labour Organization (ILO) and the Universal Declaration
of Human Rights of the United Nations. The HUGO BOSS social standards based on these
benchmarks form a constituent element of the contractual provisions concluded with
all suppliers. These social standards commit the suppliers to meeting local and national
environmental laws. Suppliers also have to raise the awareness required to identify the
environmental impacts of their business activities at the individual locations and work
continually to reduce these impacts over the long term. HUGO BOSS advises its partners on
these matters wherever possible and establishes a continual process of knowledge transfer.
Compliance with HUGO BOSS social standards is safeguarded through regular audits at the
Company’s own facilities and with suppliers. The audit process is supported by experts from
the Company and they play a role as contacts to foster ongoing development of suppliers
in the area of social management.
HUGO BOSS passes on its findings based on experience in the context of joint ventures
and works together with other companies and organizations in the development of
sector-wide standards to create a sustainable structure for the textile supply chain. These
include establishment of a fair remuneration policy and HUGO BOSS is participating in this
initiative through its membership with the Fair Labor Association (FLA). Work is also being
done on developing pollutant management systems through membership in the AFIRM
sector association. The Company is also working on the establishment of a process for
the management of environmental impacts in the supply chain within the framework of
the environmental module of the Global Social Compliance Programme (GSCP), a global
corporate initiative to improve labor and environmental conditions in the supply chain. In
2014, HUGO BOSS started working on a pilot project to implement improvement processes
with selected suppliers and this is being expanded to other suppliers in the course of 2015.
The long-term aim is to advance all business partners in a gradual process to a defined level
of performance in the environmental area by 2020.
Partners – Achieving Joint Responsibility
Protecting Human Rights
Sustainability Report 2014
64
P R OT E C T I N G H U M A N R I G H T S
HUGO BOSS social standards apply to all employees at the production facilities operated
by HUGO BOSS and its suppliers, irrespective of whether they are permanent employees
or are employed in some other way. HUGO BOSS social standards comprise the following:
•
•
•
•
•
•
•
compliance with national laws and international conventions,
prohibition of child labor and forced labor,
definition of maximum working hours and ensuring humane and safe working conditions,
prohibition of discrimination,
payment of appropriate wages,
right to freedom of association and collective wage bargaining, and
rules to promote a conscientious and ethical approach to the environment.
In countries where national legislation only provides inadequate definition for working hours
and appropriate wages, HUGO BOSS social standards then ensure the minimum standard.
Sustainability factors are taken into account in the selection of new business partners,
and compliance with social standards is one of the primary mandatory enablers for the
commencement of business relations. The validation of social standards is carried out
either in a process of self-assessment or by means of local audits. Business relations only
commence once all the requirements have been complied with and the Group approves the
supplier. HUGO BOSS attempts to ensure as a matter of principle that all its decisions result
in a reduction of environmental impacts. This approach includes giving precedence to local
sourcing where offers are equivalent. Analysis includes the life-cycle costs of a product, the
use of sustainable materials, and a responsible use of chemicals. In 2014, 792 contractual
relationships existed with suppliers in 43 countries where the HUGO BOSS social standards
were confirmed without exception. Out of these suppliers, 617 were engaged in an active
supplier relationship with HUGO BOSS. Cooperation was rejected in a total of nine cases
with potential business partners.
Social Compliance Audits are carried out on an ongoing basis in order to guarantee that
suppliers also observe HUGO BOSS social standards during the course of business relationships. The reviews are carried out by our own auditors (2014: 44%) and in cooperation
with experienced external service providers (2014: 56%). The selected business partners
are provided with detailed, advance information on the procedure and expectations of
HUGO BOSS for the review. When suppliers are selected for the audits, defined criteria
are taken into account. Suppliers are audited if they are engaged in active cooperation and
if they generate a relevant level of sales with HUGO BOSS. All new and existing suppliers
producing finished goods throughout the world are audited if they generate sales volume
of more than EUR 30,000 in six months. New suppliers of raw materials from the Asian
region and existing suppliers are audited from a sales volume of EUR 10,000 in six months.
Audits of raw-material suppliers concentrate on businesses based in Asia on account of risk
perspectives. These form a significantly smaller group in the context of the total number
of raw-materials suppliers since the Group mainly sources its raw materials from Europe.
Suppliers of raw materials in Europe are primarily evaluated on the basis of self-assessments
since higher standards of social compliance prevail in Europe.
Review of social standards
with all relevant suppliers
through audits.
Partners – Achieving Joint Responsibility
Protecting Human Rights
Sustainability Report 2014
65
266 audits based on these principles were carried out at 221 production facilities in 2014.
This represents a coverage rate of approximately 30% out of all the suppliers engaged in an
active supplier relationship (617). Each individual visit to the production facilities is counted
separately for the reviews carried out.
When the Social Compliance Self-Assessment was introduced in 2014, HUGO BOSS
was able to significantly increase the transparency in its supply chain. The comprehensive
analytical tool means that all the key elements of the HUGO BOSS social standard can be
evaluated with the Company’s partners and their compliance monitored. The tool is primarily
directed toward raw-materials suppliers based in Europe and more specifically those
companies which have a purchasing volume of less than EUR 10,000 every six months. The
medium-term aim of the Company is to use this tool to create maximum transparency in
its supply chain. During the year under review, 54% of the major suppliers were evaluated
using Social Compliance Self-Assessment. This meant that approximately 84% of significant
business partners were reviewed for compliance with HUGO BOSS social standards.
0 5 | 0 1 N U M B E R O F B R E AC H E S O F T H E C O D E O F C O N D U C T
Egypt
China
Social Compliance
Management
Indonesia
Italy
Ukraine
Turkey
0
16
0
1
1
1
Child Labor & Young Laborers
0
1
0
0
0
0
Forced Labor
1
1
0
1
0
0
Freedom of Association &
Collective Bargaining
0
0
0
0
0
0
Hours of Work
1
11
1
0
0
1
Worker Treatment
0
1
0
0
0
0
Compensation & Benefits
0
6
0
0
0
1
Health & Safety
0
4
1
0
0
1
Discrimination
0
0
0
0
0
0
T O TA L
2
40
2
2
1
4
54% of the significant
suppliers took part
in a self-assessment
on social standards
Partners – Achieving Joint Responsibility
Protecting Human Rights
Sustainability Report 2014
66
The audit results are entered in the half-yearly supplier evaluation carried out by HUGO BOSS.
If any breaches of the social standards or statutory regulations are identified, the Company
works together with the supplier to draw up a binding action plan. A supplementary
implementation check is also agreed. In exceptional cases, such as repeated warnings
without the introduction of any improvements, or serious infringements of social standards,
HUGO BOSS reserves the right to bring cooperations to an end. However, HUGO BOSS is
basically committed to jointly defined, continuous improvement measures in the context
of partnerships established on a long-term basis. This objective is assisted by experts
made available to suppliers by HUGO BOSS. They have know-how and are able to provide
assistance on the ground as necessary.
The HUGO BOSS Group noticed in its audits in 2014 that one supplier had infringed the
minimum age of 16 with one employee on account of falsified identity documents. The
employment relationship was ended immediately and measures to improve the process of
verification for the age of employees were introduced. The return of the affected employee
to school was immediately ensured and financial support was provided through payment of
school fees until the student reached the age of 16. The three incidents relating to forced labor
involved the retention of identity documents and wages and the misinterpretation of statutory
conditions for serving notice. In the case of the retained identity papers, the documents
were immediately returned to the employees and the management was requested to take
immediate measures and institute adjustments to processes. Successful implementation is
checked by external creditors. The payments relating to outstanding wages with a supplier
from Italy were made immediately. If legally permissible, HUGO BOSS tracks additional
salary payments intensively while also taking employees’ needs into account. An agreement
was reached with the employees affected by the misinterpretation of statutory conditions
for serving notice and a company-wide training measure was carried out with the supplier
to ensure that the correct statutory requirements are applied when serving notice on
employees. Furthermore, the process was adjusted to match the statutory requirements.
The analysis of the audits carried out has demonstrated that the key risks for good working
conditions are in the area of social compliance management, health and safety, as well as in
monitoring of the suppliers. The development of the management systems of its suppliers
is a top priority for HUGO BOSS.
Partners – Achieving Joint Responsibility
Fair Remuneration
Sustainability Report 2014
67
FA I R R E M U N E R AT I O N
HUGO BOSS joined the Fair Labor Association (FLA) in the year under review in order to
play a role in structuring the sector-wide standards and launched the definition of a compensation strategy for employees of its suppliers. This is based on the principles of the FLA
and acknowledged academic publications. HUGO BOSS believes that fair compensation
with suppliers improves the standard of living for employees and their relatives as well as
forming the platform for a long-term business relationship based on partnership. Furthermore,
the HUGO BOSS Group assumes that maintenance of the FLA principles and projects in
cooperation with other members of the FLA exerts a positive impact on other sectors of
the supply chain – for example on strengthening the productivity and product quality or the
improvement of working conditions.
In the year 2014, the first steps were taken with the objective of collecting and analyzing
fundamental data from selected suppliers in a pilot phase. When partners were selected for
continuing the project in the business year 2015, a number of different criteria were taken
into account with particular emphasis on those which pursue a high degree of transparency
and demonstrate an interest in cooperation with HUGO BOSS. In 2015, the fundamental
components for fair compensation were defined on the basis of the findings. Over the
upcoming years, the compensation strategy will initially be applied to the finished-goods
suppliers before being extended to the raw-materials suppliers and other groups of suppliers
in 2020.
Partners – Achieving Joint Responsibility
Sustainability Report 2014
68
FA I R L A B O R AS S O C I AT I O N
The Fair Labor Association (FLA) is a cross-sector collaboration with the
objective of improving the quality of life for workers across the world.
44 participating companies
across different sectors.
Exerted an influence for more
than 5.5 million workers.
Collaboration with up to
200 universities worldwide.
The focus of the association is on maintenance of workers’ rights and fair working conditions
along the supply chain in compliance with international standards. Since its establishment
in 1999, the FLA has already been able to improve conditions for millions of workers,
concentrating particularly on factory workers in emerging economies.
The initiative follows a multi-stakeholder approach. This involves companies, civil society
organizations and educational institutions working together with the FLA to prevent abusive
labor practices, and develop solutions to systemic problems in global supply chains.
FLA Participating Companies implement two key foundational commitments in their supply
chains: the FLA’s “10 Principles of Fair Labor and Responsible Sourcing” (at the headquarter
level) and the “FLA Workplace Code of Conduct” (at the factory level), which align with the
standards of the UN International Labour Organization (ILO).
The FLA also promotes advanced training measures for factory workers and management,
provides factory assessments for Participating Companies, and publicly reports the findings
of these assessments to increase transparency around the conditions under which companies’
products are made. Partners – Achieving Joint Responsibility
Minimizing Environmental Impact
Sustainability Report 2014
69
M I N I M I Z I N G E N V I R O N M E N TA L I M PAC T
HUGO BOSS commits its business partners to maintenance of high environmental standards
and transparency, and supports them by providing training sessions and communication in the
future development of their business practices. HUGO BOSS held a “Vendors Day” in 2014
to inform selected suppliers about key innovations and targets in the area of sustainability.
The Group developed a new environmental standard and implemented the first phase
with selected partners for effective monitoring and management of environmental
impacts in the supplier chain. In future, business partners of HUGO BOSS will have to
enter information on environmental aspects in the supplier database in order to improve
analysis and monitoring of compliance with environmental objectives within the database
of the supplier chain. The platform is provided by the methodology of the Global Social
Compliance Programme (GSCP), a global corporate initiative to improve occupational and
environmental conditions in the supply chain. HUGO BOSS has expanded the content of
the existing qualitative initiative of the GSCP with indicators from other standards such as
the GRI, and adjusted it to the specific internal requirements. Future and existing partners
provide information about environmentally related data in at least five core areas. Indicators
for the consumption of energy, water, and the emission of greenhouse gases, as well as
individually relevant information are recorded.
The new initiative also permits an allocation of partner companies to a specific performance
level in the database. This enables HUGO BOSS to create an image of the environmental
impacts of the business activity of its suppliers and also to develop and record plans
incorporating measures for long-term improvement in their level of performance.
During the introduction of the new process, HUGO BOSS provides its business partners with
comprehensive support and ensures that the new requirements can be correctly implemented.
Internal contact partners are available for this purpose. However, the Group also provides
contacts with experts in the individual regions. The engagement of HUGO BOSS actively
supports the target of the GSCP directed toward providing uniform minimum requirements
in the area of environmental protection with suppliers and harmonizing existing standards.
Successful pilot project
concerning environmental
monitoring for suppliers.
Partners – Achieving Joint Responsibility
Minimizing Environmental Impact
Sustainability Report 2014
70
0 5 | 0 2 M A N AG E M E N T P R O C E S S F O R E N V I R O N M E N TA L P E R F O R M A N C E O F B U S I N E S S
PA R T N E R S
SPECIALISTS
SUPPORT
OFFLINE /
ONLINE TOOL
Self-Assessment
Problem
Identification
Solution
Finding
ON-SITE THIRD
PA R T Y AU D I T O R
Implementation
Impact-Assessment
T R A I N I N G & C A PA C I T Y B U I L D I N G
Over the coming years, all suppliers of HUGO BOSS will be introduced into the process.
A performance level to be achieved will also be defined for each supplier. The intention is
for this to be achieved by all strategic partners of the company by 2020.
Nine selected suppliers participated in the development and application of new methodology
during the pilot phase in 2014. The first stage involved data recording and carrying out a
self-assessment of the relevant environmental indicators. Five of the companies were
then audited by external audit institutes. In 2015, the pilot phase is being continued with
additional partners. The results flow into the ongoing development of supplier management.
Partners – Achieving Joint Responsibility
Sustainability Report 2014
71
G LO B A L S O C I A L C O M P L I A N C E P R O G R A M M E
The Global Social Compliance Programme (GSCP) is a global, cross-­
sector initiative of almost 40 companies for the improvement in occupational and environmental conditions in the supply chain.
40 companies involved
from ­different sectors.
Continuous improvements
­through exchange &
­c ooperation, based on best
practice.
Added value
for all participants along
the supply chain.
The program pursues the objective of standardizing existing initiatives and standards and
developing a globally valid framework for quantifying the progress of companies in these
areas. The GSCP does not perceive itself as a standard competing with existing systems
but as a platform on which divergences and similarities can be discussed and best practice
examples can be passed on.
The GSCP also includes players from civil society. The advisory board is made up of influential
experts from non-government organizations, international organizations, unions, and players
from the area of socially responsible investment. They advise the chairman of the GSCP on
the strategic direction of the program and evaluate advances.
In 2010, the GSCP expanded its original focus on socially compatible working conditions
with the open standard of the environmental module. The aim was to expand the area of
environmentally friendly production processes.
Partners – Achieving Joint Responsibility
Avoidance of Harmful Substances
Sustainability Report 2014
72
AVO I DA N C E O F H A R M F U L S U B S TA N C E S
In the area of pollutant management, HUGO BOSS has been seeking sector-wide exchange
and cooperation with other companies for many years. As an active member in the company
association AFIRM, HUGO BOSS engages with a range of different working groups. The
ongoing development of pollutant management is the central focus here, for example the
definition of a sector-wide list of hazardous substances, joint approaches, or identification
of best practice. As part of membership with AFIRM, HUGO BOSS offered its suppliers
training sessions free of charge relating to the handling of chemical substances and the
regulations associated with them. Furthermore, HUGO BOSS is in active communication
with companies from the premium and luxury segment and is working on drawing up a
uniform Restricted Substances List (RSL).
In 2014, HUGO BOSS launched a project which is intended to avoid the use of substances
that are hazardous to humans and the environment. This extends beyond the products
themselves to the production processes. An internal analysis assessed the application,
chemical structure, and relevance for HUGO BOSS of a number of substances relevant
to textiles and leather.  Section on Product: Product Safety Opportunities for elimination or
reduction of these substances were identified on the basis of this analysis by appropriate
adjustment of the production processes. The next stage involved defining a strategy from
the findings of the analysis phase which is intended to be applied for all relevant suppliers
together with a monitoring system. By 2020 and beyond, this initiative is aimed at gradually
avoiding the use of defined substances in production processes.
Development of different
solutions for avoidance
of pollutants.
PRODUCTS –
IDE AS FOR TOMORROW
74 Management Approach
77 Design
80
Materials
83 Animal Welfare
84 Product Life Cycle
85 Product Safety
Products – Ideas for Tomorrow
Management Approach
Sustainability Report 2014
74
PRODUCTS –
IDEAS FOR TOMORROW
HUGO BOSS stands for fashion in the premium and luxury segment
that meets the highest quality requirements and complies with strict
environmental standards. Continuously optimized processes ensure that
products are manufactured in a way that strives to conserve resources
and does not pose any risks to health and safety. Naturally, the Company
respects the protection of animals and species and is committed to the
objective of further developing this engagement.
K E Y TA R G E T S
100%
use of European down
not originating from live-plucked
or force-fed sources
from the Fall/Winter 2016
Collections.
100%
cessation of the use
of angora wool
from the Fall/Winter 2015
Collection.
Increase use
of mulesing-­free wool
in all ­knitted-­wool ­products to 90% by 2020.
100%
cessation of the use
of farmed fur
such as raccoon dog,
fox, or rex rabbit
in all collections from 2016.
M A N AG E M E N T A P P R OAC H
As a leading international company in the premium and luxury segment of the apparel
industry, it is a matter of course for HUGO BOSS to live up to its responsibility to consumers.
HUGO BOSS defines the focuses along the entire life cycle of its products. During the year
under review, the Group developed a comprehensive set of criteria for the future direction
of sustainable product management and defined sustainability categories. Furthermore,
the strategic goals for relevant business units were developed up to the year 2020. This
means that HUGO BOSS has established a clear framework for a responsible approach to
products within the Group and for business partners. The Group is committed to long-term
expansion of its sustainability management in the following categories:
• Animal and species protection
• Product safety and
• Environmentally friendly products.
Products – Ideas for Tomorrow
Management Approach
Sustainability Report 2014
75
HUGO BOSS applies systematic adjustment of management processes and implementation
in key business areas to ensure that all comply with legal and internal objectives in the Group
and in the supply chain, while developing new targets at the same time.
HUGO BOSS respects animal and species protection and upholds the principles of
bio­­diversity. The Company rejects any animal testing, inhumane treatment of animals,
non-species appropriate animal breeding and animal husbandry methods. In future, the Group
will consistently restrict purchase of furs to materials that are byproducts of the food industry.
Furthermore, cooperation will be expanded with suppliers who practice species-appropriate
animal husbandry. Strict internal regulations govern the use of all animal materials throughout
the Group. HUGO BOSS also works on future-oriented processing methods. HUGO BOSS
has been in dialog with several animal and consumer protection organizations for many years,
for example with People for the Ethical Treatment of Animals (PETA), and the Company
integrates external requirements when developing internal standards.
HUGO BOSS places great value on the quality of its products and has the expectation that
they are free from hazards to the safety and health of its employees in production and for
its customers. Product tests enable products to be tested for compliance with standards
which are applied to avoid harmful effects. HUGO BOSS has summarized these standards
in a Restricted Substances List (RSL) which includes statutory and even more extensive
requirements. HUGO BOSS is in dialog with other market participants through the company
association AFIRM for advanced development of sector-wide guidelines on the management
of hazardous substances. HUGO BOSS is also engaged in a working group of companies
in the luxury and premium segment which has been working on developing a uniform
Restricted Substances List (RSL) since June 2014.  Section on Partners: Management approach
HUGO BOSS implements environment-related measures along the entire life cycle of its
products. In concrete terms, this entails protecting natural resources as much as possible
through intelligent concepts and environmentally friendly technologies, as well as continuously reducing environmental impacts. When selecting materials and procedures, criteria
such as water consumption and CO2 footprint are taken into account. The requirements
of external stakeholders are also integrated. During the year under review, HUGO BOSS
therefore initiated a joint venture with the global nature and species protection organization
“International Union for Conservation of Nature” (IUCN) and this will be implemented in
2015. Risks and issues in the area of biodiversity and environment which are relevant to the
Company are identified and initiatives for solutions developed jointly. In future, the results
will be channeled into the product strategy as external expert knowledge. Information is
provided in the section on Partners relating to the management of social standards for the
products.  Section on Partners: maintenance of human rights
Products – Ideas for Tomorrow
Management Approach
Sustainability Report 2014
76
In the design phase, the use of high-quality renewable materials and long-life fabrics is
playing an increasingly important role, as is the optimization of the use of material during
product planning and the avoidance of waste in production. The ecological effects of
packaging are reduced through the use of recycling material and by optimization of weight,
measurements, and reusability.
0 6 | 0 1 P R O D U C T D E V E L O P M E N T P R O C E S S AT H U G O B O S S
SOURCING
AND PRODUCTION
RESEARCH
AND DEVELOPMENT
Design
Pattern Design
Technical
Product Development
S U S TA I N A B I L I T Y
In June 2014, the Company carried out a survey with 8,000 participants in five European
markets, the USA and Canada, in order to gain a better understanding of the expectations
of consumers for sustainability in the premium and luxury segment for fashion articles and
in the collections of HUGO BOSS, and to implement the findings. The panel was made up
of three groups: consumers who are familiar with the HUGO BOSS brand by name, active
customers, and particularly loyal customers. The results showed that sustainability has now
become an important factor for consumers. Around 70% of the people surveyed expect
fashion companies to have sustainability as a fixed component in their business activity.
Animal protection, environmental impacts, and working conditions are listed as particularly
important fields of action. When purchasing fashion articles and products, a robust 44% of
participants stated that sustainability was important or very important as far as they were
concerned. This trend is particularly strongly marked in the German market, where 77% of
the people surveyed were also prepared to pay a markup for sustainable fashion. The
HUGO BOSS Group received good scores in the survey. The survey participants perceived
the Company as one of the leading companies among the segment of fashion companies
in the premium and luxury segment. The results of the survey were discussed with internal
and external experts and analyzed for market opportunities and risks.
Implementation
of a ­consumer ­survey
on ­sustainability
in the ­fashion sector.
Products – Ideas for Tomorrow
Design
Sustainability Report 2014
77
DESIGN
The organizational structure of the HUGO BOSS Group is directed towards ensuring that
product design, product development, and procurement processes are closely integrated.
This directly connects the creative areas with the product divisions responsible for model
development and technical development on the one hand, and procurement and production
activities on the other. Sustainability is integrated in all phases of product development.
The processes are implemented in several stages. Initially, creative management defines
the collection statement, designs the concepts for color, theme, shape and outer fabric,
and defines product prices. The model department then carries out a second stage with
a review of the ideas to assess the feasibility of the tailoring pattern. The models are then
developed further to create prototypes in the technical development department and assess
their suitability for the industrial production process. Finally, sampling takes place with the
production of a sample collection followed by series production for sale in the stores.
During the year under review, the Company established a database on environmental Establishment of a database
aspects of materials and processes in order to support the design teams with facts relevant on environmental aspects
for the environment. This was drawn up in cooperation with institutes, universities, suppliers, for the internal design team.
and experts. This knowledge flows into all phases from product development to the end
of the usage phase.
Computer-based visualization is another measure relating to the integration of environ­
mentally friendly technologies within product development. This is increasingly being
used in categories including shirts, jerseys, knitwear, outwear, trousers, and shoes. The
3D envisionment simulates design concepts so that numerous versions and processing
procedures can be presented. The number of physical patterns and the resources required
for this are reduced in this way. Over the coming years, the plan is to expand the procedure
to all product categories so that it can already be used at the agreement stage with suppliers.
An important aspect of product responsibility is also the last phase in the product life cycle,
disposal and recovery. If possible, the materials used should be recoverable. When
selecting the materials and product procedures the product design is therefore also geared
to ascertaining the recyclability of the components.
Products – Ideas for Tomorrow
Sustainability Report 2014
78
INNOVATIONS
NEED CONVICTION
Interview with Bernd Keller on sustainable product development: for
many years, HUGO BOSS has been monitoring how customer preferences change. Their purchase decisions increasingly include values
and sustainability aspects. This development necessitates new initiatives and designs in creating products. Bernd Ludwig Keller, Brand and
­Creative Director Sportswear at HUGO BOSS, speaks about persuasion
and innovation.
What demands do customers
make of HUGO BOSS?
We see the future of HUGO BOSS there
in the direction in which our customers
are developing – we want to convince,
surprise, and inspire our customers. At the
beginning of 2014, we carried out a survey
to find out about the expectations that
customers have of HUGO BOSS. In this
connection, we succeeded in carrying out
an analysis, which established that quality
and sustainable values are important to
them. They are particularly interested in
the topic of animal protection. Therefore,
if we connect our quality requirements
with sustainability, our customers receive
a special statement which they are able
to pass on: luxury imbedded with values.
What role do ethics and environment
play in fashion at HUGO BOSS?
Contemporary customers are part of a
generation which is reevaluating their
ethical and fundamental values. We want
to include this generation among HUGO
BOSS consumers. We demonstrate
through our products that premium and
luxury are able to integrate ethical and
environmental issues. I see sustainability
in this connection as a great enrichment
and inspiration for innovative initiatives.
Which approach does HUGO BOSS
apply to integrating animal protection
into its product design?
As one of the leading companies in the
premium and luxury segment, we have
a great deal of responsibility. In our view,
sourcing down feathers from the plucking
of live animals is not ethical and we have
therefore taken the decision to reject this
practice. When purchasing merino wool,
we give preference to suppliers, who do
not use the painful mulesing procedure on
their animals. We also have high standards
Products – Ideas for Tomorrow
Sustainability Report 2014
79
for the use of fur from farmed animals:
from our Fall/ Winter 2016 Collection
onward, we will no longer be using raccoon
dog or rex rabbits. This means we will
not be using any farmed fur in any of our
HUGO BOSS clothing collections and are
sending out a clear signal.
How does HUGO BOSS convince
with its initiatives, ­particularly
in the luxury segment?
We are aware that we may lose some
customers with this new positioning.
In this context, we are talking about
customers who traditionally associate
luxury with farmed furs – there is definitely a market for this. However, acting
sustainably sometimes means saying
“No”. Appropriate alternatives also need
to be developed. Today, we are therefore
also successfully supplying “friendly
fur” and “friendly leather” products. We
want to use these products to inspire the
present generation and especially the next
generation with a new kind of luxury.
What are the most difficult challenges,
in order to drive forward animal
protection through products?
At the start of each new season, we
integrate market analyses into the
framework planning for collections
alongside trend factors. This allows us to
plan on the basis of valid data. However,
the easiest route is not always the best
trajectory. As already described, we have
significant expertise in developing luxury
articles with fur applications among
HUGO BOSS luxury articles. However,
we have decided to adopt a different
route and we are therefore giving our
sustainable corporate strategy – in this
case animal protection – precedence over
the “fast” and “simple” route to success.
We are delighted to embrace innovative
challenges in relation to the planning and
design of a collection.
What alternatives and initiatives
does HUGO BOSS utilize?
Innovation and expertise are key strengths
of HUGO BOSS. Renouncing farmed furs
does not inevitably entail giving up a luxury
look. Innovative outer fabrics, special forms
of processing for leather derived from
livestock, or types of embossing, such
as a reptile imprint, enable us to achieve
an extremely luxurious and contemporary
product. We believe that conveying values
through clothing increasingly meets our
vision for the demands of a consumer who
espouses contemporary values.
Where do you see HUGO BOSS
and the fashion sector in relation to
sustainability five years from now?
Being creative also means carrying out
research on the future. I am convinced that
sustainability issues like animal protection
or a more frugal approach to resources are
more than simply trends. The argumentation I use in discussion with designers
and market players is expressed in terms
of having trust in the future. This is why
HUGO BOSS will confer the “Sustainability
Innovation Award” for the first time in
2015. We want to use this to provide an
even stronger motivation for our experts
and designers in the future and to promote
the fun in developing future-oriented
alternatives.
Products – Ideas for Tomorrow
Materials
Sustainability Report 2014
80
M AT E R I A L S
HUGO BOSS exclusively uses high-quality materials which meet customers’ expectations
for high levels of wearing comfort, long life, excellent fit, and color fastness. Sustainability
criteria are becoming increasingly relevant in this area and are already being taken into
account when shoppers make purchases. Alongside quality and price, shoppers also look at
manufacturing conditions, including the origin and processing. Many materials originate from
raw materials of natural origin: In the reporting period, cotton made up almost half of the
total materials with 46%, wool was a share of 18%, and leather represented a proportion of
13%. The majority of the fabrics produced in our own facilities and in contract manufacture
originates from Europe. Materials are generally sourced from longstanding partners in Italy.
Components like inner lining, buttons, yarns, and zips are sourced directly.
0 6 | 0 2 M O S T U S E D M AT E R I A L S I N 2 0 14
(Weight in t, proportion in %)
Cotton
6,659 (46)
Wool
2,565 (18)
Leather
1,923 (13)
Synthetic fibers
Rubber
Regenerated fibers
1,775 (12)
566 (4)
440 (3)
Polyurethane
147 (1)
Silk
132 (1)
Linen
93 (1)
Compressed wood fibers
61 (0)
HUGO BOSS sees recycling as an important lever for reducing the volume of material
used and for closing the circle for material flows. At the moment, the Company purchases
a relatively low volume of recyclable materials for the manufacture of its products, due to
the high quality requirements. Nevertheless, resources are continually being reviewed in
order to identify where secondary raw materials can be used, most importantly in the area
of operating resources.
Products – Ideas for Tomorrow
Materials
Sustainability Report 2014
81
0 6 | 0 3 U S E O F R E C YC L E D M AT E R I A L S
Category
Clothing
Bodywear
Material
Type of packaging
Description
Polystyrene
Hangers
9% of the used hangers for suits are annually
reused. It is possible to have a lifecycle of 5 times
and each hanger collected is 50% cheaper as
original.
Polyurethane Hanger’s foam
Paper
Recycled
Proportion of recycled paper: 6%
Certified
Proportion of certified paper: 82%
50% of the shipping boxes are reused in
warehouses.
Sportswear
Non-­
Production
Materials
Paper
Shopping
Packaging
Hang Tags, Waist Tags
and Packaging
Requirements for certified paper i.e. FSC or
recycled materials (i.e. hang tags, waist tags and
boxes, recycled poly bags), shipment in reusable
boxes
Sustainability Criteria
100% of the shopping packaging (bags and boxes)
are designed or being redesigned in 2015 according
to sustainability criterias (certified, recycled,
­redesigned and under redesign)
Recycled/Certified
49% of the packaging material is recycled and/or
certified (25% is made of recycled material
and 24% of the packaging have a FSC certified)
Re-designed Material
Current status: 45% of the packaging has been
redesigned
Using recyclates in the manufacture of coat hangers offers great potential for reducing
the use of materials. Current estimates indicate that one billion coat hangers are brought
into circulation each year, just in the German apparel industry. In 2014, HUGO BOSS was
responsible for approximately 4.5 million hangers. Since 2012, the Company has been able to
increase the proportion of coat hangers that have been sourced from a closed loop process
by more than 300%. This has increased not only the recycling rate, but also reduced costs:
while a majority of the coat hangers continues to be disposable products, plastic hangers
used in the closed loop process can be reused up to five times and entail on average less
than half the costs. The use of recycled plastics enabled HUGO BOSS to save substantial
amounts of primary raw materials in 2014. The proportion of recycled hangers is currently
at 6.7% and the intention is to continuously increase this. At the moment, the aim is to
increase the proportion of recycled hangers to 10% by 2015 and to 30% by 2020.
Products – Ideas for Tomorrow
Materials
Sustainability Report 2014
82
0 6 | 0 4 C L O T H E S H A N G E R L I F E C YC L E
WITHOUT CLOSED LOOP
PRODUCTION
CLOSED LOOP
PRODUCTION
Raw materials: Synthetic materials (PS), steel
Raw materials: Synthetic materials (PS), steel
C LOTHE S HAN G E R P RO DU C T I O N
CLOT H E S H A NGE R P ROD UCT ION
R E TAI L
S H R E DDI N G /
WAST E
Granulate
Waste
disposal
I N DU ST RY
RE TA IL
IND UST RY
RE USE T H ROUGH
COL L E CT ING
A ND SORT ING
Granulate
During the year under review, HUGO BOSS set up a database and a toolbox for sustainable
products in order to reduce the environmental impacts of its products as much as possible.
The toolbox was developed in line with the initiative “Product Environmental Footprint”
established by the European Union.
The manufacturing efficiency of the products is being improved by regularly reviewing and
optimizing processes. In the reporting period, various procedures in the refinement process
were analyzed to assess potential energy savings.
Products – Ideas for Tomorrow
Animal Welfare
Sustainability Report 2014
83
A N I M A L W E L FA R E
Animal and species protection are key principles of product responsibility at HUGO BOSS.
During the year under review, the Company has optimized various standards and defined
concrete measures for the upcoming years.
HUGO BOSS is concentrating on furs that are byproducts of the food industry. A decision
was taken in 2014 only to source furs from operations with high animal husbandry standards,
starting in the business year 2016 (Fall/Winter Collection). Pelts and furs from farm animals
are generally only used to a small extent in collections, usually for applications and trimmings
on collars, hoods and sleeves. From 2016, no fur from raccoon dogs, foxes or rex rabbits
will be used in the collections. This material is commonly used throughout the sector for
decorative effects on hoods and hats. The Company has also identified innovative materials
which meet customers’ high quality expectations and provide a premium alternative to
conventional furs. These standards will enable the Group to reduce the use of furs in all
its apparel collections.
During the year under review, HUGO BOSS decided to cease purchasing angora wool
in all areas, and this policy will take effect with the Fall/Winter 2016 Collection. Like many
other textile manufacturers, HUGO BOSS faces a major challenge when purchasing merino
wool. The practice of mulesing often used in the primary source markets of Australia and
New Zealand with the intention to prevent deadly flystrike infestations is painful for sheep.
Today, HUGO BOSS is already giving preference to suppliers of knitwear who do not use
wool from sheep subject to the mulesing practice. In future, suppliers of knitwear will
have to provide transparency about the operational procedures for animal husbandry and
care, for example by means of certification. In the business year 2014, the Group made
a commitment to continuously leverage the use of mulesing-free wool in all pure-woolen
products. The target is 90% by the year 2020. In addition, HUGO BOSS works together
with manufacturers on applying procedures for harvesting quality fibers from renewable
plant raw materials.
From the Fall/Winter 2016 Collection, HUGO BOSS will not be using any down from liveplucked or force-fed birds. All the sourced materials will originate from producers in Europe
and are 100% traceable. At the same time, the company is working on optimizing the filling
quantities and reviewing alternative fibers for high quality requirements. All products from
HUGO BOSS where down is used are appropriately labeled.
Furthermore, HUGO BOSS has the commitment to not use any materials from animal species
that are under threat of extinction. The demand for equivalent textiles and accessories is
being provided through a variety of procedures, such as relief prints and imitations.
Products – Ideas for Tomorrow
Product Life Cycle
Sustainability Report 2014
84
P R O D U C T L I F E CYC L E
The standards of product responsibility described in the management approach apply
worldwide for HUGO BOSS. The aim is to assess the products over their entire life cycle
for health and safety impacts, as well as in light of potential opportunities for making
environmental savings. Since the business year 2009, the Group has carried out regular
Life Cycle Assessments (LCA) for relevant products. HUGO BOSS has thereby created a
system for tracking and reducing the environmental impacts of its products.
HUGO BOSS created an innovative information platform in the Life Cycle Assessment
project “ecologtex” launched in 2012. This platform is based on a research methodology
for product design based on sustainability. The platform is geared to the standard of the
International Reference Life Cycle Data System (ILCD). The cooperation partners integrated
in this project include the Swiss Commission for Technology and Innovation (KTI), The
Swiss Federal Institute of Technology Zurich (ETH), organizations such as Helvetas, and
companies from the entire value chain. During the reporting year, 35 Life Cycle Inventories
were created for the products shirt and knitwear. The analysis ranged from the cultivation
of the raw materials to the use of the products. On this basis, the aim is to structure the
value creation processes in accordance with even more environmentally friendly principles
in the future.
The “ecoshoe” project is being implemented by the HUGO BOSS Center of Shoe Competence
in cooperation with Ancona Polytechnic (Italy) and was successfully completed in the business
year 2014. It follows the “cradle-to-cradle approach” and takes account of all environmental
factors along the supply chain – from the breeding of animals, through the tanning process
and the actual manufacture of the shoe, to the potential reuse of the materials used. As
a result of the research project, three innovative and more sustainable leather soles were
developed. For example, synthetic dyes were replaced by natural substances like cocoa
and the method of inner soles was applied. A number of other initiatives were also tested
including more environmental alternatives to solvents, different tanning techniques, shoe
cream based on cosmetic ingredients, and optimization of shoes for potential composting.
The central LCA database was developed on the basis of the ecologtex platform and has
been expanded by the modules of retraceability and simulation. This provides product
design with a procedure that simulates the numerous design and production options and
then pinpoints the effective supply chain for the individual production slots.
Since 2014, HUGO BOSS has been involved in the initiative of the European Union for the
ecological footprint of products, Product Environmental Footprint (PEF). The Group is
part of the reference group for the “T-shirt” pilot project. The Company is analyzing two
different supply chains for the production of T-shirts with 100% actual data from the cotton
field to the end of the life cycle in order to identify the individual environmental impacts.
Expansion of Life Cycle
Assessments by 35 datasets
for the products shirt and
knitwear.
Products – Ideas for Tomorrow
Product Safety
Sustainability Report 2014
85
P R O D U C T SA F E T Y
The collections of HUGO BOSS meet the highest quality and safety standards. Comprehensive guidelines and harmonized processes ensure that there are no potential health and
safety risks for employees in the production phase or for customers while they are using
the products.
In order to achieve this, the products are reviewed for harmful impacts along their life
cycle. During the business year 2014, numerous internal analyses were carried out in the
key phases, and potential improvements were identified. As a result, 45 so-called Life Cycle
Inventories (LCI) provided detailed data, which were supplemented with hotspot analyses
and scientific evaluations. On this basis, concrete potential improvements were identified in
product development, research and development, and production. Standards are applied for
potential health and safety impacts in product tests carried out by accredited organizations.
In 2014, 4,061 of these tests were carried out and only 4% of the tested products failed to
meet the high standards defined by HUGO BOSS.
Suppliers and business partners have to sign a warranty declaration on compliance with the
Restricted Substances List (RSL). This is a method of checking that the chemicals and
materials used comply with the individual national and international statutory regulations and
the specific requirements of the Group. For example, HUGO BOSS regulates all the elements
from the substance group of isocyanates for which there are no statutory requirements.
The specification ensures that there are no health hazards in the production process or the
end product. In many cases, the specification goes beyond the statutory regulations and is
updated on an annual basis. During the year under review, the Company was committed to
reducing substances posing a hazard to the environment and humans in all product cycles,
replacing them with alternatives and completely eliminating them over the medium term.
Products – Ideas for Tomorrow
Product Safety
Sustainability Report 2014
86
In the year 2014, HUGO BOSS also initiated a group-wide project for avoiding hazardous
substances for people and the environment. In an internal analysis, several substances
relevant to textiles and leather were assessed for their application, their chemical structure,
and the relevance for HUGO BOSS. In the coming business year, a strategy will be derived,
which in combination with a monitoring system will be applied at relevant suppliers and
cover important product groups. By 2020, the use of defined substances will be avoided
in products.
The Group has ceased to use sand blasting, in order to protect employees at the production
facilities from health hazards. The procedure describes the use of blasting streams of sand
as a method of refining denim products in order to achieve a “used” effect. If quartz sand
is used in this process without adequate protective measures, this can result in serious
health hazards. Furthermore, the Group is not using any other form of blasting technique
and also refrains from using alternative blasting agents.
The HUGO BOSS Group meets all the statutory requirements for labeling its products.
All products must be provided with information on material composition, care instructions,
country of origin and product and supplier numbers. Clear washing instructions on the
care labels makes it easier for consumers to carry out environmentally friendly cleaning.
However, during the year under review there were five cases where the labeling obligation
was inadequately dealt with. The affected product batches with faulty or illegible product
labels were returned to production and the nonconformities were immediately eliminated. In
2014, a Chinese subsidiary of HUGO BOSS was fined a penalty of EUR 13,6621 on account
of defective product labeling for a delivery under Chinese law.
Customers provide personal data when they make purchases through online stores. Data
protection guidelines ensure that the relevant statutory data protection regulations are
complied with in all countries. During the year under review, there were no complaints about
breaches of data protection regulations for customer data.
1
According to the exchange rate as of April 28, 2015.
SOCIET Y –
PROMOTING PERSPECTIVES
88 Management Approach
89 Global Commitment
91 Impacting Local Communities
93 Sponsor of Contemporary Art
Society – Promoting Perspectives
Management Approach
Sustainability Report 2014
88
SOCIETY –
PROMOTING PERSPECTIVES
Our commitment to giving back to society is an integral component of
our corporate responsibility at HUGO BOSS. In order to inspire people
beyond the Company, HUGO BOSS promotes the community engagement of its employees and seeks collaboration with external partners.
K E Y TA R G E T S
By
Implementation
of a group-wide
guideline for corporate
philanthropy by 2015.
2015,
finalize a group-wide
corporate citizenship ­s trategy,
defining strategic ­issues
and linking them to ­business
drivers.
Implementation
of a strategic
flagship project
with quantifiable value
added for society by
2020.
M A N AG E M E N T A P P R OAC H
The basis for the success of HUGO BOSS is the trust that business partners place in the
integrity and reliability of the Company. The starting point for this is credible commitment of
the Company, compliance with binding legal standards and internal guidelines. HUGO BOSS
attaches great importance on being a respected partner in its corporate environment and
assumes social responsibility at its locations.
The Code of Conduct defines the framework for the community engagement of the Company.
It prohibits donations to political parties and their representatives, as well as to organizations
where conflicts of interest might arise. This includes trade unions, consumer protection
and environmental organizations. No donations are permitted to individuals and payments
to private accounts are prohibited. Donations must not cause any reputational damage to
the Company and must be transparent and traceable. Each donation by HUGO BOSS AG
requires approval by the Chief Executive Officer of the Managing Board.
Society – Promoting Perspectives
Management Approach | Global Commitment
Sustainability Report 2014
89
The community engagement of HUGO BOSS is directed toward empowering vulnerable
children to achieve a better life, particularly through access to education. This is in alignment
with the corporate vision of inspiring people towards success. The Company works to
achieve this goal on the international level with selected child protection organizations.
HUGO BOSS is also dedicated to promoting children and young people on the national
level. The company has a long track record of joint ventures in this area with educational
institutions, hospitals, and aid organizations. It also provides short-term aid for specific
situations in crisis zones. 2014 was one such example when a donation of EUR 50,000 was
made to help Syrian refugee children.
Sponsorship of contemporary art is another pillar for the social engagement of the company.
The sponsoring activities of HUGO BOSS are directed towards promoting young artists
and allowing wider public access to contemporary art. This enables the Group to make a
contribution to cultural education and promote creativity and tolerance within society.
G LO B A L C O M M I T M E N T
Access to education is at the center of the social engagement of HUGO BOSS. The
Company promotes education projects to create the foundations for a self-determined
and successful life. As a long-time partner of the international child protection organization
UNICEF, HUGO BOSS supports educational institutions throughout the world, including the
initiative “Schools for Africa” since many years. The grants made it possible to refurbish
several educational institutions in Angola, Malawi, Ruanda, Mozambique, Zimbabwe and South
Africa or completely rebuild them. The program also equips children with school materials
and provides solid educational training for teachers. In the year 2014 alone, HUGO BOSS
supported the initiative with funds amounting to EUR 50,000.
During the year under review, HUGO BOSS made a donation of EUR 70,000 to an education
program in Bangladesh in the district of Satkhira. The project prepared pre-school children for
elementary school and provides them with a safe and child-friendly learning environment –
with impressive results. Since the beginning of 2014, 11,228 children have benefited from
one year of pre-school education at more than 400 participating learning centers. Nearly 60%
of these children were girls and more than 500 children had special needs requirements.
On the national level, HUGO BOSS is an established partner of the “Off Road Kids Foundation” since 2011. This is a nationwide aid organization for street children in Germany. The
company sponsors child care workers with three full scholarships. They study education
management at the Bad Dürrheim Hochschulinstitut run by the Off Road Kids Foundation,
while continuing their jobs. They are also given professional clothing for job interviews.
Access to education
is a strategic focus
of social engagement.
Society – Promoting Perspectives
Global Commitment
Sustainability Report 2014
90
Another important component is the community engagement of the employees of
HUGO BOSS. In different projects on a local level, they volunteer to assist in educating
children and teenagers. Since 2014, a cooperation has existed with the Dreifürstensteinschule
School in the Stuttgart metropolitan area. This is a state-approved supplementary school for
children with physical disabilities. Apprentices and dual students combining a degree with
in-service training at the Metzingen location supported young people in activities at the
students’ enterprise during the year under review. They shared their experience with them,
for example in the manufacture of products, local sales campaigns, or in public relations
work and marketing. A maximum of three projects per year are planned where up to four
talented young employees from HUGO BOSS work together with the children for several
days during their working hours.
The employees at the Metzingen location can also participate in various donation campaigns.
These were organized in 2014 by the works council and the youth and apprentice representatives. The proceeds generated were used for the benefit of the pediatric hospital
of the University of Tübingen and were also used for a HUGO BOSS blood donor drive.
Donating blood was also a top priority at the HUGO BOSS location in Australia. Office staff
at HUGO BOSS Australia Pty. Ltd. participated in an initiative by the Australian Red Cross
aimed at increasing the willingness to donate blood. This created a group of employees who
since then have regularly taken part in blood donation campaigns. Similar campaigns were
also carried out by other subsidiaries, for example HUGO BOSS China Retail Company Ltd.
HUGO BOSS CANADA Inc. has been cooperating with the Toronto International Film Festival
(TIFF) for several years now and collects donations for the “TIFF Pocket Fund”. In 2014, a
unique, limited-edition TIFF breast pocket handkerchief was designed and offered for sale
over a limited period of time in six directly operated stores. All sales generated were paid
directly into the TIFF Pocket Fund, which is primarily used to finance educational training
opportunities for disadvantaged teenagers.
In the area of vocational training, HUGO BOSS has had a close cooperation with the
State School of Fashion Design in Stuttgart for more than 25 years. This partnership allows
students and teachers to gain insights into the company and its culture, as well as selectively
transferring know-how. Each year, the HUGO BOSS Fashion Award salutes the best works
by ambitious emerging designers and product developers at the fashion school. Apart from
financial support of EUR 3,000, the winners are also given an introduction to the working
environment at HUGO BOSS through internships, which last several months. In 2014, 20
young product developers worked on their designs in a creative phase lasting four weeks
and produced their own collections for womenswear and menswear.
Society – Promoting Perspectives
Global Commitment | Impacting Local Communities
Sustainability Report 2014
91
For the first time in the history of the company, HUGO BOSS commissioned a group of
students for the concept and design development for its prestigious Christmas shop window
in 2015. 150 emerging designers from the Central Saint Martins College of Arts and Design
took part in a pitch for this and submitted a total of 74 concepts. An expert jury selected the
three most impressive designs, which received a total prize money of GBP 4,000.
HUGO BOSS also launched a collaboration with Parsons The New School for Design in New
York during the year under review. The Company is funding a newly established scholarship
program with funding amounting to USD 250,000 over a period of five years. The objective
of the partnership is to promote talented young designers and make it easier for them to
start a career in the fashion sector.
The Group donated a total of EUR 522,822 in 2014 and this represents 18% more than in
the previous year (2013: EUR 442,351).
I M PAC T I N G LO C A L C O M M U N I T I E S
An initiative by HUGO BOSS Textile Industry Ltd. in Izmir demonstrates how the Company
can make a positive contribution to the local community, as well as its employees. Free
shuttle services are provided for employees free of charge. The buses are scheduled several
times a day based on the shift times in production and travel along fixed routes. Workers
using the shuttle service cut down the volume of traffic and generate fewer environmental
impacts compared with individual traffic.
Collaboration with ­
Parsons The New School
for Design in New York.
Society – Promoting Perspectives
Sustainability Report 2014
92
STRONG COMMUNIT Y IN TURKEY
HUGO BOSS
IZM I R PROMOTION OF THE LOCATION
Local cooperation is one of the most
important factors for HUGO BOSS Izmir in
Turkey. The Company’s biggest production
location runs a number of projects with a local
focus on emerging talents, the Company’s
own employees, as well as people outside
the Company.
HUGO BOSS and its employees collect
money through the “Education Association” to finance grants for talented school
children and college students. Since 2008,
the Company has reached more than 500
young people through this initiative. The
“BOSS Campus” program enables HUGO
BOSS to hold lectures at universities and
gives students practical insights into the
production facility. “We are proud of the
well-established cooperation with universities
and students. Both sides have benefited
from this initiative for many years”, explained
Mahmut Demirkapi, Sustainability and Social
Compliance Leader for HUGO BOSS Izmir.
The “Operational Excellence Day” also
focuses on an exchange of expertise:
numerous companies from Turkey and all
over the world come together there in order
to discuss their ideas on excellence and
present best practices. The most successful
supplier of the year is also honored with
an award.
HUGO BOSS Izmir provides a comprehensive
recreational program for employees. The
activities offered include theater, fishing,
dancing, music and running – there is a club
for virtually any interest. The HUGO BOSS
Olympic Games provide an annual highlight.
More than 1,000 employees and their families
compete against each other in various ball
and board games.
Over the past five years, employees have
received more than 30,000 hours of advanced
career training. Around 65% of the training
was carried out by managers and employees
of HUGO BOSS as internal trainers. This
highlights the pool of know-how within the
company and further enhances identification
of employees with the Company. In 2014, the
content focused on the issues of personnel
leadership, management systems, improvement management, and health protection
and workplace safety.
Moreover, HUGO BOSS in Izmir also creates
career training opportunities for people
outside its own workforce. The objective
is to make it easier for upcoming tailors
and seamstresses to gain a permanent job.
HUGO BOSS has joined forces with the
Turkish Employment Authority (ISKUR) and
the local training center to provide potential
tailors and seamstresses with a three-month
work placement and introduce them to
the vocation. HUGO BOSS provides the
workplaces and the trainers in cooperation
with the training center. The content covers
health and safety measures, procedures
and quality criteria, and effective application
of production facilities. Since 2010, more
than 880 students have participated in the
program for career training. A large proportion
was subsequently hired by HUGO BOSS: in
2014 almost 83%.
Society – Promoting Perspectives
Sponsor of Contemporary Art
Sustainability Report 2014
93
S P O N S O R O F C O N T E M P O R A RY A R T
HUGO BOSS believes that contemporary art is an important element of cultural education.
It inspires people to be inspired by new ideas, promotes tolerance, and fosters a spirit of
innovation. Contemporary art is therefore a fixed element in the company culture, which
HUGO BOSS has supported with passion and energy through an international cultural
sponsoring program for nearly 20 years.
In 2014 and in collaboration with the Solomon R. Guggenheim Foundation, the Company
awarded Paul Chan the HUGO BOSS PRIZE 2014. The prize is worth USD 100,000 and
acknowledges emerging talent and contemporary artists. It is awarded every two years
and ranks among the most prestigious prizes for contemporary art throughout the world.
HUGO BOSS also supports selected exhibitions through a range of sponsorship activities.
Since 2014, the Company has been the sponsor of the exhibition “Konstantin Grcic –
Panorama” at the Vitra Design Museum. HUGO BOSS employees with a particular interest
visited the exhibition in an art trip sponsored by the Company. Grcic is one of the leading
contemporary designers and presents various contemporary issues in the exhibition, such
as quality of life, sustainability, and new technologies. As a partner of London’s National
Portrait Gallery, HUGO BOSS also participated in “Bailey’s Stardust”. This has been
the biggest solo exhibition of British photographer David Bailey with approximately 250
portraits by the famous artist.
The Company’s commitment to art also gives young artists the opportunity to show their
works to a broad public. As a longstanding partner of the Berlin International Film Festival,
HUGO BOSS presented the photographic exhibition “a personal touch – young photo journalists at the red carpet” at the Berlinale 2014. The exhibition showed selected works from
a competition for young photojournalists. In Australia, the Company supported the annual
“Primavera” exhibition staged by the Museum for Contemporary Art in Sydney. Since 1992,
the exhibition series has presented works by young Australian artists.
FACTS AND FIGURES
95 Performance Indicators
108
GRI Index
113
Independent Assurance Report
115
Legal Notice
Facts and Figures
Performance Indicators We
Sustainability Report 2014
95
FACTS AND FIGURES
PE R F O R M A N C E I N D I C ATO R S W E
O R G A N I Z AT I O N A L P R O F I L E
E C 1 S A L E S BY R E G I O N (in %)
2014
2013
2012
2011
2010
Europe1
61
60
59
61
62
Americas
23
24
24
22
22
Asia/Pacific
14
14
15
15
13
2
2
2
2
3
2014
2013
Licenses
Including Middle East and Africa.
1 2 . 6 S H A R E H O L D E R S T R U C T U R E A S O F D E C E M B E R 31 (in % of share capital)
Free float
66
42
Red & Black Lux S.à r.l.
32
56
2
2
Own shares
Facts and Figures
Performance Indicators Environment
Sustainability Report 2014
96
PE R F O R M A N C E I N D I C ATO R S E N V I R O N M E N T
E N E R GY A N D E M I S S I O N S
E N 3 & E N 4 D I R E C T A N D I N D I R E C T E N E R GY C O N S U M P T I O N (in MWh)
HUGO BOSS GROUP
Energy consumption
2014
20141
20132
2012 2
32,984
Direct energy consumption
35,297
33,935
33,866
Indirect energy consumption
40,498
38,689
36,713
37,064
T O TA L
75,795
72,624
70,579
70,048
E N 3 & E N 4 D I R E C T A N D I N D I R E C T E N E R GY C O N S U M P T I O N BY E N E R GY S O U R C E (in MWh, change in %)
Direct energy consumption
2014
2014 1
2013 2
2012 2
2014 1 (%)
Heating oil
1,917
1,843
2,232
2,247
–17.4
–0.7
21.2
21.2
21.4
25.6
–1.0
–16.6
32,848
31,559
31,613
30,711
–0.2
2.9
511
511
0
0
35,297
33,935
33,866
32,984
0.2
2.7
19,173
19,173
17,984
16,835
6.6
6.8
2,941
2,941
Liquefied petroleum gas (LPG)
Natural gas
Photovoltaic
Total direct energy consumption
2013 (%)
Indirect energy consumption
Certified green electricity
Cooling (using electricity, market mix)
Electricity
18,384
16,575
18,728
20,229
–11.5
–7.4
Total indirect energy consumption
40,498
38,689
36,713
37,064
5.4
–0.9
T O TA L
75,795
72,624
70,579
70,048
2.9
0.8
E N16 & E N17 D I R E C T A N D I N D I R E C T A N D O T H E R G R E E N H O U S E G A S E M I S S I O N S (in t CO2)
HUGO BOSS GROUP
Greenhouse gas emissions
20132
2012 2
2014
20141
Scope 1 (direct energy consumption)
7,791
7,486
7,610
7,417
Scope 1 (fleet consumption)
3,035
2,744
2,900
2,751
Scope 1
10,826
10,230
10,510
10,169
Scope 2 (indirect energy consumption)
12,374
11,529
10,938
11,267
Scope 1– 2
23,200
21,760
21,448
21,436
5,239
4,456
4,437
4,485
28,439
26,216
25,885
25,921
Scope 3 (air travel)
T O TA L Scope 1– 3
1
2
ata for the reporting period 2014 on the basis of the consolidated reporting units of the reporting period 2013.
D
D ata have been slightly adjusted compared to the Sustainability Report 2013 due to altered data collection and definitions. This has not led
to fundamental changes of trends.
Facts and Figures
Performance Indicators Environment
Sustainability Report 2014
97
E N17 G R E E N H O U S E G A S E M I S S I O N S T H R O U G H F L E E T V E H I C L E S AT T H E I Z M I R L O C AT I O N (in t CO2)
Greenhouse gas emissions caused by fleet vehicles1
of HUGO BOSS Textile Industry Ltd.
2014
2013
2012
1,045
1,172
1,379
reenhouse gas emissions in t CO 2 caused by own fleet vehicles as well as taxi and courier trips and company buses
G
of HUGO BOSS Textile Industry Ltd.
1 WAT E R A N D WA S T E
E N 8 WAT E R C O N S U M P T I O N (in m3)
HUGO BOSS GROUP
Water consumption
T O TA L
1
2014
20141
2013
2012
132,648
122,808
125,675
129,532
D ata for the reporting period 2014 on the basis of the consolidated reporting units of the reporting period 2013.
Among other reasons, the increased water consumption is due to the temporary parallel operation of the warehouses in Filderstadt, Wendlingen and Frickenhausen, the higher number of employees and a leakage in the “O2”
warehouse. The latter was identified by an environmental management tool and subsequently repaired.
E N 2 2 WA S T E VO L U M E S BY T Y P E (in t)
HUGO BOSS GROUP
Waste volumes by type
Nonhazardous waste
Hazardous waste
T O TA L
2014
20141
2013 2
2012 2
3,944
3,889
3,685
3,857
28
27
29 3
14
3,972
3,917
3,714
3,871
ata for the reporting period 2014 on the basis of the consolidated reporting units of the reporting period 2013.
D
D ata have been slightly adjusted compared to the Sustainability Report 2013 due to altered data collection and definitions. This has not led
to fundamental changes of trends.
3 A djusted data due to legal provisions concerning threshold values for the disposal of chemicals.
1
2
The increased waste volume can be explained by the start-up of the Filderstadt warehouse and a related threemonth testing phase.
Facts and Figures
Performance Indicators Employees
Sustainability Report 2014
98
PE R F O R M A N C E I N D I C ATO R S E M P LOY E E S
All data for 2014 include permanent, as well as temporary workers. Figures for 2013 and 2012 relate to permanent
workers only. Information provided concerning type of employment, more concretely work contract by gender, in
the reporting period refer solely to HUGO BOSS AG (Germany), HUGO BOSS Textile Industry Ltd. and HUGO BOSS
Ticino SA.
E M P L OY M E N T
L A1 T O TA L W O R K F O R C E (headcount)
HUGO BOSS GROUP
T O TA L
2014
20141
2013
2012
13,043
7,101
6,789
6,709
+ 4.6
+ 1.2
Change (in %)
L A1 T O TA L W O R K F O R C E (headcount)
20141
2013
2012
Men
2,600
2,501
2,482
Women
4,501
4,288
4,227
T O TA L
7,101
6,789
6,709
Change (in %)
+ 4.6
+ 1.2
Blue-collar
workers
Apprentices
L A1 E M P L OY E E S BY E M P L OY E E C AT E G O R Y A N D R E G I O N
Management
White-collar
workers
Germany
348
1,616
689
92
617
Rest of Europe
644
1,740
3,483
16
281
Americas
301
1,004
254
0
318
Asia / Pacific
230
1,322
67
0
21
1,523
5,682
4,493
108
1,237
18.4
Region (headcount)
T O TA L
Temporary
workers
Region (in %)
Germany
10.4
48.1
20.5
2.7
Rest of Europe
10.4
28.2
56.5
0.3
4.6
Americas
16.0
53.5
13.5
0.0
16.9
Asia / Pacific
14.0
80.6
4.1
0.0
1.3
T O TA L
11.7
43.6
34.4
0.8
9.5
1
D ata for the reporting period 2014 on the basis of the consolidated reporting units of the reporting period 2013.
Facts and Figures
Performance Indicators Employees
Sustainability Report 2014
99
L A1 E M P L OY E E S BY G E N D E R A N D R E G I O N (headcount, in %)
Region
Female
employees
Male
employees
Female
employees
in %
Male
employees
in %
35.8
Germany
2,159
1,203
64.2
Rest of Europe
3,667
2,497
59.5
40.5
882
995
47.0
53.0 Americas
Asia / Pacific
1,162
478
70.9 29.1
T O TA L
7,870
5,173
60.3 39.7
Region (headcount)
< 30
30 ≤ x < 40
40 ≤ x < 50
≥ 50
Germany
943
1,008
798
613
2,391
2,599
922
252
Americas
758
458
308
353
Asia / Pacific
848
623
116
53
4,940
4,688
2,144
1,271
18.2
L A1 E M P L OY E E S BY AG E A N D R E G I O N
Rest of Europe
T O TA L
Region (in %)
Germany
28.0
30.0
23.7
Rest of Europe
38.8
42.2
15.0
4.1
Americas
40.4
24.4
16.4
18.8
Asia / Pacific
51.7
38.0
7.1
3.2
T O TA L
37.9
35.9
16.4
9.7
Full time
in %
Part time
in %
19.2
L A1 E M P L OY E E S BY E M P L OY M E N T R E L AT I O N S H I P A N D R E G I O N (headcount, in %)
Full time
Part time
Germany
2,717
645
80.8
Rest of Europe
5,450
714
88.4
11.6
Americas
1,321
556
70.4
29.6
1,464
176
89.3
10.7
10,952
2,091
84.0
16.0
Region
Asia / Pacific
T O TA L
L A1 E M P L OY E E S BY E M P L OY M E N T R E L AT I O N S H I P A N D G E N D E R 1 (headcount)
Men
Women
Full time
2,650
4,118
Part time
132
614
2,782
4,732
2014
T O TA L
D ata given apply only for the locations of HUGO BOSS AG, HUGO BOSS Ticino SA and HUGO BOSS Textile Industry Ltd.
1 7,514
Facts and Figures
Performance Indicators Employees
Sustainability Report 2014
100
L A1 E M P L OY E E S BY C O N T R AC T T Y P E A N D R E G I O N (headcount, in %)
Region
Unlimited
Limited
Unlimited
in %
Limited
in %
Germany
2,532
830
75.3
24.7
Rest of Europe
5,945
219
96.4
3.6
Americas
1,877
0
100.0
0.0
636
1,004
38.8
61.2
10,990
2,053
84.3
15.7
Men
Women
2,464
4,176
Asia / Pacific
T O TA L
L A1 E M P L OY E E S BY C O N T R AC T T Y P E A N D G E N D E R 1 (headcount)
Employees by work contract in 2014
Unlimited
Limited
318
556
T O TA L
2,782
4,732
7,514
D ata given apply only for the locations of HUGO BOSS AG, HUGO BOSS Ticino SA and HUGO BOSS Textile Industry Ltd.
1 N E W H I R E S , T E R M I N AT I O N S A N D T U R N OV E R
For the first time information on new hires and terminations by age can be presented. However, these data differ
from the reporting scope and do not include apprentices and temporary workers.
L A 2 N E W H I R E S BY R E G I O N 1 (headcount)
Region
Germany
216
Rest of Europe
1,514
Americas
565
Asia / Pacific
807
T O TA L
3,102
L A 2 N E W H I R E S BY G E N D E R A N D R E G I O N 1 (headcount, in %)
Region
Women
Men
Women
in %
Men
in %
38.0
Germany
134
82
62.0
Rest of Europe
837
677
55.3
44.7
Americas
226
339
40.0
60.0
531
276
65.8
34.2
1,728
1,374
55.7
44.3
Asia / Pacific
T O TA L
Data without apprentices and temporary workers.
1 Facts and Figures
Performance Indicators Employees
Sustainability Report 2014
101
L A 2 N E W H I R E S BY AG E A N D R E G I O N 1
Region (headcount)
Germany
Rest of Europe
Americas
Asia / Pacific
T O TA L
< 30
30 ≤ x < 40
40 ≤ x < 50
≥ 50
92
83
31
10
1,037
378
84
15
348
123
58
36
521
219
42
25
1,998
803
215
86
4.6
Region (in %)
Germany
42.6
38.4
14.4
Rest of Europe
68.5
25.0
5.5
1.0
Americas
61.6
21.8
10.3
6.4
Asia / Pacific
64.6
27.1
5.2
3.1
T O TA L
64.4
25.9
6.9
2.8
L A 2 T U R N OV E R R AT E BY G E N D E R , AG E A N D R E G I O N 1, 2 (in %)
Turnover rate
2014
Proportion of men
26.4 Proportion of women
23.9 Proportion of Germany
7.9 Proportion of region Rest of Europe
21.9 Proportion of region Americas
35.9 Proportion of region Asia/Pacific
53.1 Proportion of employees under 30 years
41.7 Proportion of employees between 30–40 years
19.2 Proportion of employees between 40–50 years
11.7 Proportion of employees over 50 years
12.6 L A 2 T U R N OV E R R AT E BY R E G I O N 1 (in %)
Germany
7.9 Rest of Europe
21.9 Americas
35.9 Asia / Pacific
53.1 T O TA L
24.9 Data without apprentices and temporary workers.
Turnover rate by gender, this means in relation to the total amount of female respective male employees as of December 31.
Turnover rate by age, this means in relation to the total amount of employees in the respective age category as of December 31.
1 2 Facts and Figures
Performance Indicators Employees
Sustainability Report 2014
102
L A 2 T U R N OV E R BY R E A S O N A N D R E G I O N 1 (in %)
Region
Employee-­
specific
Germany
Employer­specific
Redundancy
Retirement
Other 2
0.1
4.8
2.7
0.0
0.3
Rest of Europe
15.6
5.0
0.3
1.0
0.1
Americas
22.1
13.5
0.1
0.1
0.2
Asia / Pacific
41.1
8.7
3.1
0.1
0.0
T O TA L
17.5
6.1
0.6
0.6
0.1
L A 2 T E R M I N AT I O N BY R E G I O N 1 (headcount)
Region
Germany
210
Rest of Europe
1,282
Americas
560
Asia / Pacific
859
T O TA L
2,911
L A 2 T E R M I N AT I O N BY R E A S O N A N D R E G I O N 1 (headcount)
Region
Employee-­
specific
Employer­specific
Redundancy
Retirement
Other 2
3
Germany
127
72
0
8
Rest of Europe
913
295
15
56
3
Americas
344
211
1
1
3
666
141
50
2
0
2,050
719
66
67
9
Women
Men
Women
in %
Men
in %
Asia / Pacific
T O TA L
L A 2 T E R M I N AT I O N BY G E N D E R A N D R E G I O N 1 (headcount, in %)
Region
Germany
125
85
59.5
40.5
Rest of Europe
720
562
56.2
43.8
Americas
248
312
44.3
55.7
Asia / Pacific
594
265
69.2
30.8
1,687
1,224
58.0
42.0
T O TA L
Data without apprentices and temporary workers.
Other: death, emigration.
1 2 Facts and Figures
Performance Indicators Employees
Sustainability Report 2014
103
L A 2 T E R M I N AT I O N BY AG E A N D R E G I O N 1
Region (headcount)
< 30
30 ≤ x < 40
40 ≤ x < 50
≥ 50
48
98
34
30
Rest of Europe
755
409
92
26
Americas
292
131
73
64
Germany
Asia / Pacific
T O TA L
559
234
39
27
1,654
872
238
147
14.3
Region (in %)
Germany
22.9
46.7
16.2
Rest of Europe
58.9
31.9
7.2
2.0
Americas
52.1
23.4
13.0
11.4
Asia / Pacific
65.1
27.2
4.5
3.1
T O TA L
56.8
30.0
8.2
5.0
Women
Men
Women
in %
Men
in %
100.0
Data without apprentices and temporary workers.
1 DIVERSITY
L A13 M A N AG E M E N T L E V E L BY G E N D E R (headcount, in %)
Management level
L1
0
3
0.0
L2
9
34
20.9
79.1
L3
83
122
40.5
59.5
L4
369
410
47.4
52.6
L5
236
257
47.9
52.1
≥ 50
L A13 M A N AG E M E N T L E V E L BY AG E
Management level (headcount)
< 30
30 ≤ x < 40
40 ≤ x < 50
L1
0
0
1
2
L2
0
7
26
10
L3
1
77
88
39
L4
80
361
235
103
L5
139
249
80
25
Management level (in %)
L1
0.0
0.0
33.3
66.7
L2
0.0
16.3
60.5
23.3
L3
0.5
37.6
42.9
19.0
L4
10.3
46.3
30.2
13.2
L5
28.2
50.5
16.2
5.1
Facts and Figures
Performance Indicators Employees
Sustainability Report 2014
104
L A12 P E R F O R M A N C E R E V I E W S BY G E N D E R (headcount)
Gender
Male employees
Female employees
HUGO BOSS AG
HUGO BOSS
TICINO SA
HUGO BOSS
Textile Industry Ltd.
1,428
205
231
783
116
199
L A13 C O M P O S I T I O N O F T H E S U P E R V I S O R Y B OA R D BY G E N D E R A N D AG E (headcount, in %)
Gender
Male employees
Female employees
T O TA L
Headcount
%
11
92
1
8
12
Age
Age group “under 30 years”
0
0
Age group “between 30 and 39 years”
1
8
Age group “between 40 and 49 years”
2
17
Age group “older than 50 years”
9
75
T O TA L
12
O C C U PAT I O N A L H E A LT H A N D S A F E T Y
L A 7 W O R K- R E L AT E D AC C I D E N T S BY R E G I O N 1
Region
Injuries
> 1 lost day
Germany
75
Rest of Europe
65
Americas
Asia / Pacific
T O TA L
9
13
162
UGO BOSS UK Ltd., HUGO BOSS Ireland Ltd and HUGO BOSS Canada Inc. are not included. Commuting and sport accidents are included if these are
H
declared as work-related accidents by local framework conditions.
1 Facts and Figures
Performance Indicators Employees
Sustainability Report 2014
105
L A 7 A B S E N T E E A N D S I C K N E S S DAYS 1 (working day equates 8h)
Sickness days
Absentee days
Lost days > 1
Germany
35,140
1,638
940
Rest of Europe
29,101
8,556
587
Americas
29,490
0
9
8,165
801
250
101,896
10,995
1,786
Sickness day
rate
Absentee day
rate
Lost day
rate
Germany
5.2
5.6
0.1
Rest of Europe
2.2
2.9
0.0
Americas
9.8
9.8
0.0
Asia / Pacific
2.2
2.5
0.1
T O TA L
3.9
4.4
0.1
Region
Asia / Pacific
T O TA L
HUGO BOSS UK Ltd., HUGO BOSS Ireland Ltd and HUGO BOSS Canada Inc. are not included.
1 L A 7 A B S E N T E E A N D S I C K N E S S DAY R AT E S 1 (in %)
Region
C alculations are based on contractually fixed working days. HUGO BOSS UK Ltd., HUGO BOSS Ireland Ltd. and HUGO BOSS Canada Inc. are not included.
1 Facts and Figures
Performance Indicators Partners
Sustainability Report 2014
106
PE R F O R M A N C E I N D I C ATO R S PA R T N E R S
PROTECTION OF HUMAN RIGHTS
A F 9 - A F 14 / H R 4 - H R 7 N U M B E R O F B R E AC H E S O F T H E C O D E O F C O N D U C T
Egypt
China
Indonesia
Italy
Ukraine
Turkey
Social Compliance Management
0
16
0
1
1
1
Child Labor & Young Laborers
0
1
0
0
0
0
Forced Labor
1
1
0
1
0
0
Freedom of Association & Collective
Bargaining
0
0
0
0
0
0
Hours of Work
1
11
1
0
0
1
Worker Treatment
0
1
0
0
0
0
Compensation & Benefits
0
6
0
0
0
1
Health & Safety
0
4
1
0
0
1
Discrimination
0
0
0
0
0
0
T O TA L
2
40
2
2
1
4
Facts and Figures
Performance Indicators Products
Sustainability Report 2014
107
PE R F O R M A N C E I N D I C ATO R S P R O D U C T S
M AT E R I A L S A N D R E CYC L I N G
E N1 M AT E R I A L S U S E D (in t)
Material
Usage
Renewability
Cotton
Raw material
Renewable
Amount
6,659
Wool
Raw material
Renewable
2,565
Leather
Raw material
Renewable
1,923
Synthetic fibers
Raw material
Renewable
1,775
Mixed materials
Packaging (Products)
Non-renewable
854
Plastic
Packaging (Products)
Non-renewable
854
Paper
Packaging (Shopping)
Renewable
850
Paper
Packaging (Products)
Renewable
658
Rubber
Raw material
Non-renewable
566
Regenerated fibers
Raw material
Renewable
440
Composites
Packaging (Shopping)
Non-renewable
275
Plastic
Packaging (Shopping)
Non-renewable
222
Polyurethane
Raw material
Non-renewable
147
Silk
Raw material
Renewable
132
Linen
Raw material
Renewable
93
Compressed wood fibers
Raw material
Renewable
61
Cashmere
Raw material
Renewable
37
Ethylene vinyl acetate
Raw material
Non-renewable
31
Acrylic
Raw material
Non-renewable
30
Textile
Packaging (Products)
Non-renewable
23
Polycarbonate
Raw material
Non-renewable
16
Metal
Packaging (Products)
Non-renewable
12
Brass
Raw material
Non-renewable
9
Alpaca
Raw material
Renewable
Various materials 1
Various
Other renewable
Various materials 1
Various
Various materials
5
21
7
T O TA L
18,265
Various materials cover all materials with an amount of less than 5 tonnes each.
1 E N 2 R E C YC L E D F R AC T I O N O F R E TA I L PAC K AG I N G
Type of Packaging
Material Type
Gross weight Recycled fraction
(in kg)
(in kg)
Certified fraction
(in kg)
Recycling rate
(in %)
Boxes
Paper
133,801
Shopping bag
Composite
274,980
274,980
274,980
100 Paper
716,168
60,272
52,431
8.4 Plastic
221,564
Textile
7
Suit bag
T O TA L
1,346,519
0 0 0 335,252
327,411
24.9 Facts and Figures
GRI Index
Sustainability Report 2014
108
G R I I N D E X1
I N D E X BY G R I (G3.1)
Indicator
Status
Page
1 STRATEGY AND ANALYSIS
1.1 Statement from the CEO
fully
6 – 7
1.2 Description of key impacts, risks and opportunities
fully
22, 24 – 25
2 ORGANIZATIONAL PROFILE
2.1 Name of the company
fully
3
2.2 Primary brands, products and services
fully
9 – 10
2.3 Operational structure and divisions
fully
11 – 12
2.4 Location of headquarters
fully
9
2.5 Countries with major operations
fully
10 – 11
2.6 Nature of ownership
fully
15
2.7 Markets served
fully
10 – 11
2.8 Scale of the reporting organization
fully
9
2.9Significant changes in the reporting period
fully
12
2.10 Awards received in the reporting period
fully
29
3 REPORTING PARAMETERS
3.1 Reporting period
fully
3
3.2 Date of previous report
fully
3
3.3 Reporting cycle
fully
3
3.4 Contact for questions on the report
fully
115
3 – 4
3.5 Processes for defining report content
fully
3.6 Boundary of report
fully
3 – 4
3.7 Specific limitations on scope
fully
3 – 4
3.8 Joint ventures, subsidiaries, outsourcing
fully
3 – 4
3.9 Data acquisition
fully
3 – 4
3.10Explanation of any restatements of information
fully
4
3.11 Significant changes in scope, boundary or measurement methods
fully
4
3.12 GRI Index
fully
108 – 112
3.13 External verification
fully
113 – 114
4 GOVERNANCE, COMMITMENTS AND ENGAGEMENT
4.1 Governance structure
fully
15 – 16, 25
4.2 Independence of the supervisory board chairperson
fully
15 – 17
4.3 Supervisory board or independent directors
fully
16 – 17
4.4Mechanisms to provide shareholder and employee recommendations
to the board/supervisory board
fully
28 – 29
4.5Link between senior management compensation and company
performance
fully
17
17
4.6 Processes to ensure conflicts of interest are avoided
fully
4.7 Sustainability expertise of the board/supervisory board
fully
15 – 16
4.8 Vision, corporate values, and codes of conduct
fully
20, 49, 51
4.9 Board-level processes for overseeing sustainability performance
fully
25 – 26
4.10 Processes for evaluating board performance
fully
15, 17
4.11 Implementation of the precautionary principle
fully
18
4.12 External initiatives that the organization endorses
fully
29
he statement covers all core-indicators. Skippings within the numeration are explained by the fact that only GRI-additional indicators and sector
T
allegations are being covered by the index. Referring to the GRI G3.1-Guidelines, HUGO BOSS assesses its degree of fulfillment to a A+. This assessment
was audited and confirmed by the GRI (see page 108).
1 Facts and Figures
GRI Index
Sustainability Report 2014
109
I N D E X BY G R I (G3.1)
Indicator
4.13 Memberships in industry and business associations
Status
Page
fully
29
4.14 Stakeholder groups engaged by the organization
fully
27 – 28
4.15Basis for identification and selection of stakeholders to engage
fully
27 – 28
4.16 Approaches to stakeholder dialog
fully
28
4.17 Response to key concerns raised by stakeholders
fully
27 – 29
ECONOMIC PERFORMANCE INDICATORS
Management approach
EC1 Direct economic value created and distributed
fully
21 – 22
fully
9 – 11
EC2 Financial implication of climate change
fully
18
EC3 Coverage of benefit pension plan obligations
fully
55
fully
The company did not receive
significant financial assistance
in the reporting period.
EC4 Financial assistance received from government
EC5 Ratio entry level wage to minimum wages
EC6 Payments to locally-based suppliers
partially
55
partially
64; HUGO BOSS distinguishes
between global and international
sourcing.
partially
42, 56; HUGO BOSS supports
a high diversity within its
workforce. The company applies
primarily criteria such as qualification and work experience in the
recruitment process.
fully
89 – 92
EC7 Local hiring for senior management positions
EC8 Infrastructure investments and services for public benefit
ENVIRONMENTAL PERFORMANCE INDICATORS
Management approach
EN1 Weight/volume of materials used
fully
74 – 76
fully
80 – 81, 83, 107
partially
80 – 82, 107; data regarding the
share of secondary raw materials
used are not yet available and will
be reported approx. as of 2017.
33 – 34, 96
EN2Percentage of secondary raw materials used
EN3Direct energy consumption
fully
EN4 Indirect energy consumption
fully
33 – 34, 96
EN5 Savings of energy due to efficiency improvements
fully
33 – 36
EN7Reduction of indirect energy consumption
fully
33 – 36
EN8 Total water withdrawal by source
fully
37, 97
fully
No significant impacts in the
reporting period.
EN9Water sources significantly affected by withdrawal of water
EN11 Land use in protected areas
fully
No land use in protected areas.
EN12 Impacts of activities on protected areas
fully
Siehe EN11
EN14 Managing of impacts on biodiversity
fully
22, 27, 33
EN16 Direct and indirect greenhouse gas emissions
fully
33 – 35, 96 – 97
EN17 Other relevant greenhouse gas emissions
fully
33 – 35, 96 – 97
EN18 Initiatives to reduce greenhouse gas emissions
partially
33 – 36
fully
No release of ozone-depleting
substances.
fully
No release of NOX, SOX or other
significant airborne emissions
in the reporting period.
EN19 Ozone-depleting substances by weight
EN20 NO X , SO X and other significant airborne emissions by weight
EN21 Water discharge
fully
37, WS 1
EN22 Waste by type and disposal method
fully
37, 97
A dditional information can be found under http://group.hugoboss.com/en/sustainability/
1 Facts and Figures
GRI Index
Sustainability Report 2014
110
I N D E X BY G R I (G3.1)
Indicator
EN23 Number and volume of significant spills
Status
Page
fully
No significant releases in the
reporting period.
fully
No transport of hazardous waste
according to the Basel Convention (annex I, II, III and VIII) in the
reporting period.
fully
No significant impacts in the
reporting period.
partially
72, 84 – 85; quantitative data
concerning the mitigation of
environmental impacts are not
yet available and will be reported
approx. as of 2017.
not reported
Used products and packaging
can usually be reclaimed in
a more efficient and ecological
way through external service
providers. Especially for textile
and shoes, humanitarian organizations have well-established
networks.
EN24 Total weight of transported waste
EN25 W
ater Sources affected by water discharge
EN26 Initiatives to mitigate environmental impacts of products and services
EN27 Percentage of recycled products and their packaging materials
EN28 F
ines and sanctions for non-compliance with environ-mental regulations
fully
37
EN29 Environmental impacts of transporting
fully
38
SOCIAL PERFORMANCE INDICATORS LABOR PRACTICES AND DECENT WORK
Management approach
fully
40 – 43
LA1 Total workforce
fully
43 – 45, 98 – 100
LA2 Employee turnover
fully
46 – 49, 100 – 103
LA3 Benefits provided to full-time employees
fully
55
LA4 Employees covered by collective bargaining agreements
fully
50
LA5 Minimum notice periods regarding operational changes
fully
50
LA6 C overage of total workforce in health and safety committees
partially
58
partially
59, 104 – 105; data by gender
are not yet available and will be
reported approx. as of 2017.
LA7 Injuries, absentee rates and work-related fatalities
LA8 Prevention and risk-control programs
fully
60
LA9 Health and safety topics covered in formal agreements with trade unions
fully
58 – 60
partially
52 – 54; data concerning the
average training hours per
employee are not yet available.
First figures for selected
business units will be available
approx. as of 2016.
LA11 Programs for skills management and lifelong learning
fully
52 – 54
LA12 P
ercentage of performance and career development reviews
fully
53, 104
partially
56 – 57, 98 – 100, 104; data by
minorities are not applicable
for HUGO BOSS. The company
considers nobody as a part of a
minority.
fully
55; HUGO BOSS pays men and
women equally. Remuneration
is based on performance and
qualification of the employees.
fully
57
LA10 Training hours by employee category
LA13 C omposition of senior management and breakdown of employees
(age/gender/ethnicity)
LA14 Ratio of basic salary of men to women by employee category
LA15 Return to work and retention rates after parental leave
Facts and Figures
GRI Index
Sustainability Report 2014
111
I N D E X BY G R I (G3.1)
Indicator
Status
Page
HUMAN RIGHTS
Management approach
HR1 Investment agreements with HR clauses or screening
HR2 P
roportion of suppliers that underwent screening on human rights
and action taken
HR3 Employee training on policies and procedures concerning aspects
of human rights
fully
62 – 63
fully
64; no significant investments
in the reporting period.
fully
64 – 65
partially
54; data concerning the average
training hours per employee are
not yet available. First figures for
selected business units will be
available approx. as of 2016.
HR4 Incidents of discrimination and actions taken
fully
20, 65
HR5 Operations with significant risks to freedom of association
fully
65
HR6 Operations with higher risk of child labor and action taken
fully
64 – 66
HR7 Operations with higher risk of forced labor and action taken
fully
64 – 66
HR10 P
ercentage and total number of business units that have been subject
to human rights reviews
fully
20
HR11 N
umber of grievances related to human rights filed, addressed,
and resolved through formal grievance mechanisms
fully
20; no known grievances in the
reporting period.
SOCIETY
Management approach
fully
19 – 20, 88 – 89
SO1 P
olicy and programs to manage impacts on communities
fully
27 – 28, 88 – 89
SO2 Proportion of business units analyzed for risks of corruption
fully
20
partially
54; 43.9% of the employees
were trained in 2014. Data by
employee category are not yet
available and will be reported
approx. as of 2017.
fully
No known incidents in the
reporting period.
29
SO3 Employees trained in anti-corruption
SO4 Action taken in response to instances of corruption
SO5 Positions and participation in public policy development and lobbying
fully
SO6 Contributions to political parties, politicians, and related organizations
fully
19
SO7 L
egal actions for anti-competitive behaviour
fully
20
fully
No known incidents in the
reporting period.
not reported
Not relevant as the company’s
operations do not have significant
potential or actual negative
impacts on local communities.
not reported
Not relevant as the company’s
operations do not have significant
potential or actual negative
impacts on local communities.
SO8 Fines/sanctions for non-compliance with laws and regulations
SO9 O
perations with significant potential or actual negative impacts
on local communities
SO10 P
revention and mitigation measures implemented in operations
with significant potential or actual negative impacts on local
communities
PRODUCT RESPONSIBILITY
Management approach
fully
74 – 76
PR1 Product life cycle stages in which health and safety impacts are assessed
fully
84
PR2 Non-compliance with regulations concerning product and service
information
fully
85
PR3 Principles and measures related to product labelling
fully
86
PR4 Incidents of non-compliance with regulations and voluntary codes
concerning product and service information and labeling
fully
86
PR5 Customer satisfaction
fully
76
Facts and Figures
GRI Index
Sustainability Report 2014
112
I N D E X BY G R I (G3.1)
Status
Page
fully
HUGO BOSS complies with
all laws and voluntary codes in
advertising.
fully
No incidents in the reporting
period.
PR8 C omplaints regarding breaches of customer privacy and losses
of customer data
fully
86
PR9 Significant fines for non-compliance with regulations governing the use
of products and services
fully
86
Indicator
PR6 P
rograms for compliance with laws and voluntary codes in advertising
PR7 Incidents of non-compliance with regulations concerning marketing
APPAREL AND FOOTWEAR SECTOR SUPPLEMENT (PILOT VERSION) SUPPLY CHAIN
AF7 N
umber and location of workplaces covered by code of conduct
fully
64
AF8 Number of audits conducted and percentage of workplaces audited
fully
64 – 65
AF9-AF14 Number of incidents of non-compliance with the code of conduct
fully
65
AF15 Analysis of data from code compliance audits
fully
66
AF16 Remediation practices to address non-compliance findings
fully
66
fully
60
LABOR PRACTICES AND DECENT WORK
AF31 Initiatives and programs to reduce, and prevent the occurrence
of ­musculoskeletal disorders
Facts and Figures
Independent Assurance Report
Sustainability Report 2014
113
I N D E PE N D E N T AS S U R A N C E R E P O R T
The assurance engagement performed by Ernst & Young (EY) relates exclusively to the German PDF version of
the Sustainability Report. The following text is a translation of the original German Independent Assurance Report.
To the Management Board of HUGO BOSS AG, Metzingen
O U R E N G AG E M E N T
We have been engaged to perform a limited assurance engagement on the quantitative statements in the chapters
We – Combining Excellence and Sustainability (page 8–29)
Environment – Conserving Natural Resources (page 30–38)
Employees – Promoting Fair Employment and an Ethical Culture of Responsibility (page 39–60)
Partners – Achieving Joined-up Responsibility (page 61–72)
Products – Ideas for Tomorrow (page 73–86)
Society – Promoting Perspectives (page 87–93)
Facts and Figures (page 94–107)
of the Sustainability Report of HUGO BOSS AG (hereinafter: the report) for the reporting period from 1 January
to 31 December 2014.
The report is published as a PDF version on http://group.hugoboss.com/en/nachhaltigkeit/sustainability-report/.
L I M I TAT I O N S O F O U R E N G AG E M E N T
Our engagement is exclusively limited to the German PDF version of the report published on the website http://
group.hugoboss.com/en/nachhaltigkeit/sustainability-report/. Our engagement did not include any prospective
statements or statements relating to prior years.
CRITERIA
We assessed the report against the criteria set out in the Sustainability Reporting Guidelines G3.1 issued by the
Global Reporting Initiative (GRI). We believe that these criteria are suitable for our assurance engagement.
M A N AG E M E N T ’ S R E S P O N S I B I L I T Y
The Managing Board of HUGO BOSS AG is responsible for the preparation and the content of the report in compliance with the above-mentioned criteria. This responsibility includes the design, implementation and maintenance
of internal controls for the preparation of a report that is free from material misstatements, in accordance with
the above mentioned criteria and based on suitable methods for gathering source data including judgments and
estimates of the individual sustainability data.
OUR RESPONSIBILITY
Our responsibility is to issue an assurance report on the quantitative statements in the above mentioned chapters
of the report for the reporting period from 1 January to 31 December 2014 based on our work performed for a
limited assurance engagement.
Facts and Figures
Independent Assurance Report
Sustainability Report 2014
114
We conducted our limited assurance engagement in accordance with the International Standard on Assurance
Engagements (ISAE) 3000. This standard requires that we comply with our professional duties and plan and perform
the assurance engagement to obtain a limited level of assurance to preclude that the quantitative statements of
the above mentioned chapters of the report are not in accordance, in material respects, with the aforementioned
criteria. In a limited assurance engagement the evidence gathering procedures are more limited than in a reasonable
assurance engagement and therefore less assurance is obtained than in a reasonable assurance engagement.
We are independent from the company in compliance with the IESBA Code of Ethics for Professional Accountants
(IESBA Code), which is founded on fundamental principles of integrity, objectivity, professional competence and
due care, confidentiality and professional behavior, and have complied with other professional requirements of
the IESBA Code.
KEY PROCEDURES
The performance of our engagement mainly involved the following work:
• Inquiries of employees concerning the sustainability strategy, sustainability principles and sustainability
management including the stakeholder dialogue of HUGO BOSS AG,
• Inquiries of employees responsible for data capture and consolidation for the topics Economic Contribution,
Environment, Employees, Partner, Products and Society to assess the data capture and compilation methods
as well as internal controls of the extent relevant for the review of the quantitative statements in the above
mentioned chapters,
• Inspection of the relevant documentation of the systems and processes for compiling, analyzing, and aggregating
sustainability data in the reporting period and testing such documentation on a sample of basis,
• Inquiries and inspection of documents on a sample basis relating to the collection and reporting of sustainability
data during site visits at the locations Metzingen and Izmir,
• Analytical measures at group level and on the level of selected sites regarding the quality of the reported data,
• Review of the draft report with regard to plausibility and consistency in relation to the quantitative statements.
OUR CONCLUSION
Based on our procedures performed to obtain a limited level of assurance, nothing has come to our attention that
causes us to believe that the quantitative statements in the above mentioned chapters of the Sustainability Report
2014 of HUGO BOSS AG has not been prepared, in all material respects, in accordance with the aforementioned
criteria.
Munich, 19 May 2015
Ernst & Young GmbH
Wirtschaftsprüfungsgesellschaft
Nicole Richter
Annette Johne
Wirtschaftsprüferin Wirtschaftsprüferin
(German Public Auditor)
(German Public Auditor)
Facts and Figures
Legal Notice
Sustainability Report 2014
115
L EG A L N OT I C E
PUBLISHER
HUGO BOSS AG
Dieselstraße 12
72555 Metzingen
Phone +49 (0) 7123 94 – 2375
Fax
+49 (0) 7123 94 – 2051
[email protected]
www.hugoboss.com
O N L I N E S U S TA I N A B I L I T Y R E P O R T 2 014
http://group.hugoboss.com/en/nachhaltigkeit/sustainability-report/
C O N TAC T
Dr. Hjördis Kettenbach, Head of Corporate Communication
[email protected]
P R O J E C T M A N AG E R
Edda Dankmeyer, Senior Manager Corporate Sustainability
[email protected]
CONCEPT AND TEXT
akzente kommunikation und beratung gmbh, Munich
ART DIRECTION
hw.design, Munich
DISCLAIMER
This Sustainability Report contains forward-looking statements which are based on realistic assumptions and
estimations of the management. Although the management assumes that the expectations expressed in these
forward-looking statements are realistic, it cannot guarantee that these expectations will actually prove to be
correct. HUGO BOSS AG accepts no liability and offers no warranty against the possibility that this Sustainability
Report may contain editorial errors or be otherwise incomplete. HUGO BOSS AG has no plans to update the
forward-looking statements or to provide any corrections or supplements to this Sustainability Report, nor does it
undertake any obligations to do so. However, HUGO BOSS AG does reserve the right to update this Sustainability
Report at any time without notice. In the event of discrepancies between the German and English version of this
Sustainability Report, the German version shall be final and definitive.
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